With the formation of the new Hungarian government, substantive decisions affecting the Hungarian tax system are expected in the near future. We will provide detailed analyses of these measures as soon as they are announced. In the meantime, this overview summarises the current developments affecting advertisement tax, the use of the SZÉP card, and the administration of simplified employment during the period of the government change.
No advertisement tax
The 2025 Hungarian autumn tax package originally stated that from 1 July 2026 a 7.5% advertising tax would be reintroduced on advertising revenues above 100 million HUF, from which the budget expected around 10 billion HUF in additional income. The system would have operated in a progressive, banded way, with tax exemption on the first 100 million HUF of revenue, partly addressing previous EU competition law concerns.
In April 2026, however, a government decree decided that the advertising tax rate will remain at 0%, so the previously planned reintroduction will not take place. According to the legal justification, the decision is based on the economic effects of the war environment and the need to avoid further increasing the burden on businesses.
The new government also plans to reduce or eliminate the retail tax and phase out other sector-specific special taxes.
Changes related to the SZÉP card
Amounts credited to the SZÉP card may be used for the purchase of cold food products only until 30 April 2026. This temporary option applies to the period from 1 December 2025 to 30 April 2026 and affects the accommodation sub-account. The preferential use covers prepared foods, bakery products, meat, and basic foodstuffs.
As this option will cease from early May 2026, we recommend amending fringe benefit policies (where this temporary option is expressly included), ensuring appropriate configuration of fringe benefit systems, and informing affected employees in a timely manner.
Changes to simplified employment
Data related to simplified employment (Hungarian abbreviation: EFO) can now be queried electronically. Through the mobile application of the Hungarian tax authority, the client portal (ÜPO) or eBEV, both employees and employers may track the number of days already worked. This allows verification of compliance with the annual 120-day limit, even prior to registration.
As a result of the government change, significant modifications to the Hungarian tax system are expected, which may substantially reshape companies’ tax and regulatory obligations. Should you require expert support in navigating this evolving landscape, please request a proposal from our tax consulting team.
This article is for general information purposes only and should not be considered as advice.
