Cross‑Border Tax Forecast 2026 in Hungary

New and modified provisions for tax (base) allowances with effect from 20 June 2025, 20 July 2025, 20 November 2025, 20 December 2025 and 1 January 2026.

Increased threshold for monthly corporate income tax (CIT) advance payment as of 1 January 2026.

CIT (base) allowances:

• the maximum of R&D tax base allowance increased to HUF 150 million (approximately EUR 397,878) with extended scope
• extended scope of R&D tax allowance and set maximums in the ratio of eligible costs, i.e. 100% for fundamental research; 50% for applied (industrial) research; 25% for experimental development
• tax base allowance of micro enterprises increased to 150%
• new title for development tax allowance: “Investments targeting clean technology manufacturing capacity” to a maximum of 15% of eligible costs of investment within Budapest, and 35% of eligible costs of investment carried out beyond Budapest
• new tax allowance: for investments and renovations aimed at the remediation of environmental damage and other specified environmental protection purposes
• development tax allowance for “strategically significant investment for the transition to a net-zero economy” abolished

CIT advance payment:

• the threshold for monthly tax advance payment was increased from HUF 5 million to HUF 20 million (approximately EUR 13,262 to EUR 53,000), i.e. if tax payable for 2025 does not exceed the threshold, taxpayers can pay their CIT advance on a quarterly basis.

Expanded R&D and enviroment-related tax allowances create new planning opportunities; however, eligibility must be carefully assessed.

• Review investments for eligibility under new allowance categories
• Update CIT advance payment schedules where applicable

Launch of e-receipt system as of 1 July 2025 and mandatory data reporting on receipts from 1 September 2026.

SME VAT exemption threshold increases in three phases between 1 January 2026 and 1 January 2028.

VAT rate on beef reduced.

On 1 July 2025, the e-receipt system was launched on a voluntary basis. The final deadline for transition is 1 July 2028. Mandatory data reporting on receipts enters into force as of 1 September 2026 (with some foreign VAT taxpayers obliged to maintain records instead of data reporting).

The threshold for SME VAT exemption is increasing in three steps:

• 1 January 2026: HUF 20 million (approximately EUR 53,050)
• 1 January 2027: HUF 22 million (approximately EUR 58,355)
• 1 January 2028: HUF 24 million (approximately EUR 63,660)

The VAT rate on beef was reduced from 27% to 5% as of 1 January 2026.

Mandatory e-receipt and data reporting requirements represent a significant compliance burden; foreign VAT taxpayers must also comply with record-keeping rules. Stricter VAT group liability rules and increased exemption thresholds require attention.

• Implement receipt data reporting by 1 September 2026
• Prepare IT infrastructure for e-receipt transition (final deadline: 1 July 2028)
• Review VAT group arrangements and exemption thresholds

In December 2025, Decree No. 45/2025 (XII. 23.) of the Hungarian Ministry for National Economics on transfer pricing documentation and transfer pricing data reporting (the “TP Decree”) was published. This governs TP documentation and data provision obligations in Hungary. The TP Decree is optional for FY2025 but mandatory from FY2026. TP is expected to remain a key focus of tax audits in 2026.

From 23 January 2026, the decree brings in the following main changes:

• increased thresholds and modified scope for TP documentation obligation
• the requirements for documentation have been significantly modified: more detailed information is required, the provisions for segmentation have changed, the benefit test became mandatory for intra-group services, etc. 

The new TP Decree provides some relief by increasing the thresholds for documentation obligation, but it also substantially increases documentation obligations, introduces the mandatory benefit test and elevates guidance to a statutory level (non-compliance risk). Linking financial data to accounting records for foreign-related parties may pose practical challenges. 

• Decide when to apply the TP Decree: FY2025 (optional) or FY2026 (mandatory)
• Review TP documentation requirements and intra-group agreements
• Assess accounting system readiness for new segmentation and data requirements

Detailed rules introduced in line with performing certain obligations in connection with the global minimum tax in Hungary. The provisions enter into force as of 1 January 2026, 19 January 2026 and 26 February 2026.

As of 1 January 2026 the implementing provisions of DAC9 and the decree governing the detailed rules of data reporting relating to top-up taxes entered into force, together with the provisions governing the default penalty in connection with the global minimum tax.
The detailed rules on tax exemptions were published with effect from 19 January 2026. The provisions governing notification, tax filing and tax payment enter into force on 26 February 2026.

As more detailed provisions are published, taxpayers may also face default penalties in case of non-compliance (with possible exemption for tax years commencing before 31 December 2026).

• Review applicability and ensure timely compliance with notification, filing and payment deadlines
• Monitor tax exemptions

As of 1 January 2026.

As of 1 January 2026 the following amounts apply:

• minimum wage HUF 322,800 (approximately EUR 856) per month
• guaranteed minimum wage (for skilled workers) HUF 373,200 (approximately EUR 990) per month. 

The level of minimum wage is indicative for numerous benefits and calculations, and increases the costs of wage payers.

• Review payroll and employment arrangements in light of new minimum wage levels

As of 1 January 2026.

Various changes entered into force on 1 January 2026, the main one being the introduction of the concept of a long-term agency legal relationship, subject to SCT liability with a minimum base of 30% of the minimum wage.

Certain amendments result in increased SCT obligations for wage payers, while other amendments result in decreases.

• Review payroll and employment arrangements in light of the amended SCT provisions, as applicable

Extra profit taxes remain applicable in 2026 for various sectors, with frequent amendments by the Hungarian Government.

As of 1 January 2026, Government Decree No. 358/2025. (XI. 13.) further increased the extra profit tax liability of credit institutions and financial enterprises, overwriting provisions of the act governing extra profit taxes:

• in FY2026 the rate of extra profit tax is 10%, but 30% for a tax base exceeding HUF 20 billion (approximately EUR 53 million)
• decreased allowance connected to the purchase of state bonds to 10% of the nominal value increase, but maximum 30% of the tax without decrease. 

The extra profit tax legislation affects certain sectors, with the most recent changes affecting credit institutions and financial enterprises. Applicable provisions are overwritten by ‘state of emergency’ legislation (governmental Decree).

• Constant monitoring of legislative changes concerning extra profit tax obligations

Due to unusually cold weather in the previous month, in February 2026, Government Decree No. 12/2026. (II. 3.) introduced a one-off surtax, payable by energy suppliers, to finance heating subsidies. 

The surtax applies to entities subject to the special tax on energy suppliers (the “Robin Hood tax”), excluding those who are subject solely by virtue of holding a distribution licence. The key parameters are:

• tax base: revenue from Robin Hood tax activities per 2024 financial statements
• rate: 0.5%, capped at 50% of the taxpayer’s 2024 Robin Hood tax base.

Entities subject to the special tax on energy suppliers must declare and pay the surtax by the end of the third month of the 2026 tax year (31 March 2026 for calendar-year taxpayers).

• Confirm scope, declare and pay the surtax as applicable

Reintroduced as of 1 July 2026.

The applicable rate of advertisement tax remains 0% until 30 June 2026. As of 1 July 2026, the suspension of advertisement tax is lifted.

Tax obligations relating to the advertisement tax impose administrative and financial burden on entities in scope after 1 July 2026.

Foreign operators engaged in advertisement publishing activities are required to register with the tax authority to perform their advertisement tax obligations in Hungary.

• Assess advertisement tax exposure and register with the tax authority if required