Corporate Income Tax
Global Minimum Tax
Starting in 2025, Hungarian multinational group members may also be subject to tax advances on local top-up tax (QDMTT) by the 20th of the 11th month of the year following the tax year (in the case of the financial year coinciding with the calendar year, the first time on 20 November 2025).
Depreciation for hazardous waste storage
According to the general rule no depreciation for land and plots is deductible for corporate income tax purposes. Businesses can now deduct depreciation for land and plots used to store hazardous waste.
Tax advances based on grants to sports organizations extended
A new item has been introduced in the context of tax advances based on grants to the National Federation of Sports Associations: taxpayers can now also grant aid for the operating costs of sports facilities.
Value Added Tax
Extension of availability of 5% reduced rate for the sale of new residential properties
One significant update involves the 5% VAT rate on new residential property sales. This reduced VAT rate will continue to apply until the end of 2026.
Furthermore, for delayed construction projects, the reduced VAT rate may remain applicable in the period from January 1, 2027 until December 31, 2030, provided the building permit is available until the end of 2026.
Postponement of implementation of e-receipt system
The implementation of the electronic receipt (e-Nyugta) system, originally planned for earlier, has been postponed to July 1, 2025. This system aims to modernize receipt issuance and improve transaction transparency.
Sectoral taxes
Extension of retail sales tax for platform operators
Retail platforms will be subject to the retail sales tax based on the net sales of goods sold by other retailers through their platform.
Sectoral taxes continuing in 2025
The following most important sectorial taxes will continue through 2025.
- special tax on credit institutions and financial corporations, with a special tax deduction for the increase in the nominal value of government securities;
- additional tax on insurance companies, with the possibility of a special tax reduction linked to the increase in the nominal value of the stock of government securities;
- retail sales tax
- The Robin Hood tax, officially known as the income tax of energy suppliers remains in force with a tax rate of 41%.
Personal Income Tax
Family tax allowances
The family tax allowance rate will increase in two stages: it will rise to one and a half times the current rate starting July 1, 2025, and then double the current rate from January 1, 2026.
Other Taxes
Inflation-linked tax adjustments
Certain tax rates will automatically increase annually based on the July inflation rate of the previous year. The changes include:
- Excise duties on tobacco products, spirits, and fuels.
- Vehicle-related taxes such as registration tax, vehicle tax, and transfer tax.
- Starting in 2026, company car tax will also be adjusted for inflation.
Increase in company car tax rates
The company car tax rates will change starting January 1, 2025, with an approximate 20% increase, and from January 1, 2026, it will be adjusted annually based on the inflation rate of the previous year’s July.
Accounting and reporting requirements
- Thresholds for auditing and financial reporting will increase in 2025: The turnover threshold for mandatory audits will rise from HUF 300 million to HUF 600 million.
- Simplified annual account thresholds will also double, with balance sheet totals increasing from HUF 1.2 billion to HUF 2 billion, and net turnover thresholds rising from HUF 2.4 billion to HUF 4 billion.
- Companies subject to sustainability reporting must appoint auditors with sustainability certifications
