Family tax base allowance:

The family tax base allowance – depending on the number of dependents – will double in two stages per eligible dependent and per month of entitlement as follows:

(In force from: 01.07.2025 and 01.01.2026)

The entitlement of private individuals with a non-Hungarian (tax) residence is restricted in the case of the tax base allowance:

The family allowance, first marriage allowance, and the allowance for those under 25 years of age, which reduce the consolidated tax base, can only be claimed by citizens of EEA states and non-EEA states bordering Hungary.

The additional conditions for claiming tax base allowance for private individuals with a non-Hungarian (tax) residence remain unchanged.

(In force from: 01.01.2025)

New tax-exempt categories are included in the Act:

• Zoo tickets: can be given tax-free up to the amount of the minimum wage. The condition is that the ticket or pass is non-refundable. Vouchers cannot be given tax-free.
• Sports opportunities provided in the facility maintained by the payer, and free or discounted use of sports equipment
• Voluntary pension fund payments can be used temporarily for home renovation in 2025. Conditions:
  • Pension fund balance as of 30.09.2024 can be granted
  • Up to three times in the given calendar year
  • Under specified conditions and goals
• Tips distributed among employees: if it is provided to the employee in a manner verifiable by the records maintained by the operator of the catering establishment
• Sale of heritage properties under specified conditions
• Employer contributions to the repayment of Student Loan II without a limit
• Deposit fee of 50 HUF, except in the case of economic activities

Change: in the case of an out-of-court settlement, the compensation awarded can no longer be given tax-free.

(In force from: 01.01.2025)

Social Contribution Tax

The rate of the social contribution tax remains unchanged at 13% in 2025.

Tax benefits for new labour market entrants

The definition of a new labour market entrant has changed. A new labour market entrant is a Hungarian citizen who had an employment relationship or a legal relationship as a sole proprietor or corporate entrepreneur subject to social insurance contribution under the Hungarian Social Security Act for at least 92 days within 365 days (instead of the previous 275 days) prior to the first month of the beneficiary employment period.

However, the eligibility period for the tax benefit has been shortened to 1+ half a year instead of the previous 2+1 years.

It remains unchanged that a citizen of a non-EEA country bordering Hungary (Ukraine, Serbia) is considered a new entrant on the market.

(In force from: 01.08.2024)

Social Security

The rates of social security contributions have not changed in 2025:

• The social security contribution rate is 18.5%
• The pension contribution rate is 10%

The average gross national wage to be applied in determining the income subject to contributions in 2025 is HUF 656,785.

Healthcare services contribution

The monthly amount of the healthcare service contribution will increase to HUF 11,800 from 01.01.2025, with a daily rate of HUF 390.

(In force from: 01.01.2025)

Rehabilitation Contribution

The amount  of the contribution is nine times the statutory minimum amount of the basic wage for full-time employees on the first day of the year in question, which is HUF 2,617,200 per person per year, calculated with the minimum wage in 2025.

(In force from: 01.01.2025)

Simplified Employment

Changes in the minimum wage for occasional workers and related public charges:

(In force from: 01.01.2025)

Value Added Tax

Changes to the domestic VAT summary reports form (“M” Sheets)

On the domestic VAT summary reports, on the “M” sheets, data must be reported in forints rather than rounded to the nearest thousand forints. This means that the net and VAT amounts of each invoice must be provided in forints. In the return, the amounts still need to be reported in thousands of forints.

(In force from: 01.01.2025)

E-receipt

From 01.07.2025, in certain activity sectors, it will be mandatory to issue an e-receipt instead of a traditional receipt. The e-receipt will be issued exclusively electronically, added to the receipt register, and archived there. Daily closures will be available in electronic form.

The customer will be able to access the issued e-receipt through a mobile customer application. Upon the customer's request or in cases specified by law, a paper copy of the e-receipt must be provided.

The mandatory content of the e-receipt is more extensive than the previous receipt content, while the content of the other receipts (handwritten and online cash register receipts) remains unchanged.

With the issuance of e-receipts, the mandatory data provision from July 1, 2025, will be immediately fulfilled.

From 01.07.2025, the Hungarian tax authority will only approve e-cash registers for new cash register obligors, and from 01.07.2028, old types of online cash registers can no longer be used.

Those who were previously obligated to issue receipts with cash registers can continue to use online cash registers, but these cash registers will be gradually phased out.

(In force from: 01.07.2025.)

Deducting 50% VAT on leased passenger cars without keeping records

For open-end lease and operating lease, 50% of the VAT charged on the rental fee cannot be deducted. The option to deduct the remaining 50% of VAT without keeping detailed records has been extended for another three years, until 31.12.2027. It is important that the use of the passenger car – regardless of the extent – serves the economic activity that entitles the taxpayer to VAT deduction.

Indirect Customs Representative - Import VAT deduction

From 01.03.2025, the right to deduct VAT related to imported goods through an indirect customs representative has become stricter. Importers must meet certain conditions, making it crucial that:

• the importer is fully entitled to the VAT deduction,
• the importer submits its VAT returns on a monthly basis,

and these conditions are declared to the indirect customs representative.

The tax qualification of the importer also affects the indirect customs representative's right to deduct VAT:

• In the case of a reliable taxpayer, the right to deduction is permitted.
• For an unreliable taxpayer, the indirect customs representative must conduct a partner check.
• For a general taxpayer, the right to deduction depends on the result of the check.
• For a risky taxpayer, the right to deduction is not permitted.

If the importer has a VAT self-assessment license, the main conditions are that the right to deduction is fully applicable, and the importer submits its returns on a monthly basis.

For the indirect customs representative, an additional condition to exercise the right to deduction is to be considered a reliable taxpayer at the time of exercising the right.

(In force from: 01.03.2025.)

5% VAT on residential properties

The application of the 5% VAT rate on newly-built properties is extended for another two years, thus the 5% VAT rate will continue to apply to the sale of new and unfinished residential properties with a completion date before 01.01.2027. The current conditions are the same as before, including:

• exclusively applicable to residential properties as per the VAT law,
• the residential property can be new or unfinished,
• the useful floor area of the residential property must be within the limit values. In the case of apartments in multi-apartment residential properties, a maximum of 150 sqm, in the case of single-apartment residential properties, a maximum of 300 sqm,
• the transaction qualifies as a product sale.

According to the transitional provisions, the 5% VAT applicable to the sale of new and unfinished residential properties can still be applied to invoices with a completion date after 31.12.2026 and before 01.01.2031, if one of the following conditions is met:

• the building permit becomes final by 31.12.2026,
• the construction activity subject to a simple notification according to the law on the Formation and Protection of the Built Environment was notified by 30.09.2024,
• the simple notification according to the law on Hungarian architecture was acknowledged by 31.12.2026 at the latest.

Other Taxes

Vehicle Tax

From 2025, the tax rates will be automatically valorised based on the changes in the consumer price index published by the Central Statistical Office (KSH) for the month of July of the previous year compared to the same period of the previous year.

For 2025, the vehicle tax will increase by 4.1%.

As a general rule, the tax authority will publish the tax rates for the following year by October 31st of each year.

(In force from: 01.01.2025)

Company Car Tax

For the year 2025, the tax rates will increase by 20%.

From 2026 onwards, similar to the vehicle tax, the company car tax rates will also be valorised.

The tax authority will publish the tax rates for the respective year on its website by October 31 of the preceding year.

Rates of company car tax in HUF:

(In force from: 01.01.2025)

Extra profit taxes

The rules on extra profit taxes, introduced in the summer of 2022, have changed several times over the years.

The changes have affected different sectors differently. In some sectors, the base and/or rate of the extra tax have been modified. There are sectors where the extra profit tax will be phased out in 2025.

Retail tax

Based on the increased rates found in the government decree, the retail tax must continue to be paid in 2025.

From 2025, domestic and foreign platform operators will also be considered taxpayers.

New concepts have been introduced into the retail tax law in relation to sales through a platform:

Platform: software, website, mobile application operating as an online marketplace, aimed at connecting sellers and users.

Tax base for platform operators: the total net sales revenue from goods sold through the platform by retailers selling through the platform during the tax year.

Other retail taxpayers: reduce their retail tax by the amount of tax attributable to the net sales revenue of goods sold through the platform.

(In force from: 01.01.2025)

Excise duty

The tax rates will increase with the rate of inflation from 2025.

(In force from: 01.01.2025)

Changes in the rules of taxation

From 01.08.2024 the maximum amount of default penalty has doubled.

(In force from: 01.08.2024)

Data reconciliation procedure

From 01.01.2025 the Hungarian Tax Authority may initiate a data reconciliation procedure, requesting the taxpayer to clarify the specified data deficiencies or discrepancies. The taxpayer has 15 days to clarify the data via an electronic platform. Failure to comply with this obligation will result in a non-negotiable fine of HUF 300,000 imposed by the tax authority.

(In force from: 01.01.2025)

Clarification of insured status

If the taxpayer fails to fulfil their declaration obligation regarding the reported employee or company partner, the tax authority will request the lawful completion of the declaration or notification obligation. This must be done within a 15-day deadline. If the deadline passes without results, the tax authority will impose a 100,000 HUF penalty. In certain cases, such as in the event of dissolution, voluntary liquidation, or forced de-registration procedure the notification and penalty imposition can be waived.

(In force from: 01.07.2025)

Corporate Tax

De minimis regulation

In 2024, a new de minimis regulation came into force, which should be applied from 01.01.2024. The old de minimis regulation repealed on 31.12.2023, and the old rules were applicable until 30.06.2024.

The details are contained in the following table:

New recognized expense in corporate tax

According to Section B/27 of Annex 3, the contribution provided to a professional sports organization operating in a popular team sport during the tax year (e.g., permanently transferred funds, assets transferred free of charge) is considered a recognized expense in corporate tax up to 1% of the supporter's annual revenue.

To qualify as a recognized expense for the taxpayer, certain conditions must be met:

• The professional sports organization's annual revenue from economic or business activities must be at least 75% derived from sports activities.
• The supporter must have certification from the professional sports organization operating in a popular team sport.
• The contribution must not be made as a donation to a public benefit organization or as support eligible for a tax benefit for popular team sport.

(In force from: 01.01.2025)

Administration

The Client Gate will be terminated from 16.01.2025 to enhance the protection of personal data for individuals. Instead, the options of Client Gate+ or digital citizenship (DÁP) will be available.

Choosing digital citizenship involves opting for mandatory electronic administration.

Client Gate+:

The enhanced version of the Client Gate involves two-step verification: the username and password are supplemented with a security code generated by an authentication application.

It is important to keep the QR code and its deletion code safe.