On May 13, 2025, the Hungarian government submitted its annual mid-year tax amendment bill (T/11920), which was passed by Parliament on June 11. While such interim changes have become a tradition, this year’s summer tax package introduces several long-term shifts that businesses should watch closely.
🔍 Major Takeaways for Businesses
Extra-Profit Taxes Made Permanent
From 2026, previously temporary sector-specific extra-profit taxes will be embedded in law, including the bank levy (increased from 7% to 8% up to HUF 20 billion, and from 18% to 20% beyond that). Insurance companies may now deduct 60% of premium increases from their tax liability (up from 30%). Oil import duties on Russian-origin crude remain at 95%.
Corporate Income Tax (TAO) – More Flexibility
Cross-border restructuring firms now have 75 days to report prior shareholdings after relocating to Hungary. R&D tax incentives for collaborations with universities will rise to a HUF 150 million deduction cap.
Personal Income Tax (PIT) – New Exemptions
Mothers of three or more children will be exempt from PIT starting October 2025; mothers of two from January 2026 (phased in). Income from maternity benefits (CSED, GYED, adoption) becomes PIT-exempt from July 2025.
Social Contribution Tax Cap for Pensioners
From 2026, the current exemption will apply only up to 4× the national average wage. Income beyond that will incur the standard 13% Szocho — affecting high-earning retired employees and entrepreneurs.
VAT Changes – Digital Compliance Boosted
From September 1, 2026, even hand-written receipts must be digitally reported to the tax authority (NAV) within 3 days. E-cash register data must be submitted instantly. VAT exemption threshold officially raised to HUF 18 million, with new rules on intra-EU goods movement.
Local Business Tax Relief & New Levy
Local governments may exempt general practitioners and nurses from local business tax to address shortages. Meanwhile, the financial transaction levy will expand to cover operations on e-money accounts.
Green Energy Gains & ESG Delay
Transfers of solar and wind power plants are now exempt from property transfer duty — but the land underneath remains taxable. ESG reporting obligations are postponed to the fiscal year starting in 2027.
Global Minimum Tax – Extended Deadlines
Deadlines for reporting top-up tax liability under OECD Pillar 2 rules are extended. Companies must now recognize future obligations as deferred liabilities in financial statements.
Tax Audits – Extended Timelines for Chains
NAV’s audit window will stretch up to 540 days for complex chain transactions involving multiple taxpayers — even for “trusted” taxpayers.
Comments are closed.