On 14 October 2025, a bill containing the Hungarian 2025 autumn tax package was submitted to the Hungarian Parliament. By amending the tax laws the legislators are aiming, among other things:

• to reduce administrative burden,
• to clarify legal conditions, and
• to implement guidelines of international legal sources

in several tax types. In this article, we summarise the most important changes.

Value added tax

VAT groups

• Creation of VAT groups: The Hungarian 2025 autumn tax package would simplify the process of creating VAT groups. In the future, a statement by the member that its registration system is capable of clearly separating internal and external transactions would be sufficient, so it would no longer be necessary to demonstrate this.

• VAT group representative: In case of termination of a VAT group representative, if the group does not appoint and register a new representative within 15 days, the Hungarian tax authority would automatically appoint the member with the highest tax performance to this role. The group representative would cease to be such if the member in question were to be subject to liquidation or involuntary deregistration proceeding.

Data reporting obligation

Based on the proposal, it will be mandatory to indicate the actual amount of VAT to be deducted at the invoice level in the VAT return summary report, not just the tax base and the VAT transferred. This provision would apply to the main pages, the pages containing amendment and cancellation invoices, and the data reporting relating to advance invoices. The amendment would enter into force in July 2026.

VAT rate change

From 1 January 2026, the VAT rate payable on the sale of beef and related offal would be reduced from the current 27% to 5%.

Global minimum tax

• New definitions: In connection with the application of the transitional CbCR safe harbour rules, the definitions of simplified covered tax, recognised CbCR, qualified financial statements, and simplified effective tax rate would be introduced.

• Clarification of transitional tax rates: With regard to the transitional relief for substance based income exclusion, it would be clarified which transitional tax rate would have to be paid in which year.

Personal income tax

Mothers raising two or more children

The Hungarian 2025 autumn tax package would also simplify the tax advance declaration process in connection with the tax allowance for mothers raising two or more children.

• No separate declaration required: From 1 January 2026, mothers of three children could indicate on their family allowance declaration form if they wish to claim the allowance for mothers raising three children. Mothers of two children who gradually become eligible will also be able to take advantage of this option.

• Continuity: The mother concerned may also declare to her employer that her declaration should be considered a continuous tax advance declaration. This declaration would be valid until a new declaration is submitted.

• Tax exemption for mothers raising or having raised two children: This will be introduced gradually over four years, until 2029, depending on age.

Crypto transactions

In the case of crypto transactions, the time limit for tax equalisation would be eliminated. This means that not only losses from the previous two years, but also earlier losses not yet included in tax adjustments could be offset against trading profits in the current year. For the purposes of tax adjustment, records must be kept that clearly show the amount of losses not yet utilised in tax adjustments. This option would already be available in the 2025 personal income tax return, but it is a condition that losses older than two years must have been reported in previous years’ returns.

Compensation from credit institutions in the event of data theft

In the case of bank customers who have fallen victim to data theft, the amount reimbursed by the bank out of fairness would be considered tax-free income. The tax exemption applies to compensation not exceeding the amount of the loss; for amounts exceeding this, the general rules apply. This rule would take effect on the day following the adoption of the bill.

Social security and social contribution tax

From 1 January 2026, permanent contract work would be introduced. In this relationship, social security contributions and social contribution tax would have to be paid on the contractual fee, but at least 30% of the minimum wage. The principal may declare the permanent nature of the contract work, thereby ensuring the continuity of the insurance relationship until the end of the legal relationship and reducing subsequent administration.

Social security registration system

According to the Hungarian 2025 autumn tax package, the development of a complex IT system would help individuals access data related to health insurance benefits and pension contributions on a single platform, thereby facilitating administrative processes.

Accounting

The bill clarifies related parties‘ transactions with each other where they have agreed on the subsequent settlement of differences arising from market prices. The clarification would allow taxpayers to apply a market price determined within the market price range agreed upon by the parties, even if it differs from the median, in their accounting records, as opposed to the median tax base adjustment in the case of subsequent accounting price adjustments. According to the Hungarian 2025 autumn tax package, the amendment will apply to the 2026 financial year, but it will also be possible to opt for its application for 2025.

Corporate tax

Support for spectator team sports

The Hungarian 2025 autumn tax package clarifies the conditions for the disposal of tangible assets acquired from the support of spectator team sports, especially in the case of free transfer.

Tax relief for R&D activities

• Upper limit of tax allowances: According to the proposal, the legislator would set the maximum tax allowance for R&D projects carried out jointly with research institutes, higher education institutions, and the Hungarian Academy of Sciences at 10% of R&D costs, with an annual upper limit of HUF 500 million. The proposal is expected to enter into force on the day following its promulgation.

• Time limit: The time limit for choosing the R&D tax allowance will also change: taxpayers will now be able to change the method of claiming the tax allowance from the fifth year following the first tax year chosen, instead of the previous sixth year.

Small business tax

The Hungarian 2025 autumn tax package would remove electronic funds from the concept of cash from 1 January 2026, so they would not have to be taken into account when determining tax base adjustment items.

Duties

• Forgiving loan: Forgiving shareholder’s loan would become duty-free. An exception to this would be if the liquidation does not end with the deletion of the company from the company register. In the latter case, the duty amount must be paid with a late payment surcharge.

• Property rights related to home ownership: The duty assessment provisions relating to the acquisition of home ownership by private individuals would be extended to the acquisition of property rights related to home ownership.

• Leaseholder rights: From 1 January 2025, not only the fact of financial leasing can be indicated in the real estate register, but also the leaseholder’s right to transfer ownership. This option is currently provided for in the Hungarian Land Registry Act, but the Hungarian 2025 autumn tax package would transpose this change into the Hungarian law on duties as well.

Local taxes

• Lessee’s right: In addition to the duty law, from 1 January 2026, the law on local taxes would also include the lessee’s right and the right related to the retention of ownership in the definition of property rights.

• Municipal tax: Under the Hungarian 2025 autumn tax package, local governments would not be able to levy municipal tax on forests and related property rights.

Tax administration

The Hungarian 2025 autumn tax package would introduce automatic decision-making in tax matters, allowing the Hungarian tax authority to make decisions automatically if all the necessary data is available.

In this article, we have tried to provide a thorough summary of the most important parts of the draft Hungarian autumn tax package 2025 that affect companies’ decision makers. If you have any questions about the changes detailed here, please contact the tax consulting team of WTS Klient Hungary who are always at your disposal.

This article provides general information and does not constitute advice.