From 2026, Hungarian accounting regulation will be amended in several respects, which may directly affect financial reporting obligations, the accounting treatment of retrospective adjustments to transactions between related parties, and the determination of the exchange rate applied for foreign currency conversion. Among the changes, of particular importance are the increase of the thresholds entitling entities to prepare a simplified annual financial statement for micro-entities, as well as the accounting presentation of adjustments related to the arm’s length price under the Corporate Tax Act that are recognised up to the balance sheet preparation date. The blog post below presents the key amendments and the relevant sections of the Accounting Act (Szt.), structured with a practical focus.
Increase of thresholds for the simplified annual financial statements for micro-entities
Pursuant to Section 9 (6) of the Accounting Act (Szt.), an enterprise that is not subject to statutory audit may—at its own option—prepare its simplified annual financial statements in accordance with the government decree referred to in Section 6 (5) (i.e. simplified annual financial statements for micro-entities), if, on the balance sheet date in two consecutive financial years, any two of the following three size indicators do not exceed the limits below:
Eligibility thresholds from 2026 (total assets, net revenue, headcount):
- total assets: HUF 180 million
- annual net revenue: HUF 360 million
- average number of employees during the financial year: 10 persons
This change may typically create a decision point for those businesses that previously “just” exceeded the micro-entity limits. The choice of reporting format is not merely an administrative matter: it can also affect the level of detail in internal reporting, the ability to meet bank/partner expectations, and the time requirements of the closing process.
Adjustments related to transfer pricing between related parties
Adjustment of cost (acquisition/production) value based on retrospective settlement
(10) * The cost (purchase, manufacturing) of an asset shall be adjusted by the difference between the fair market price and the consideration applied settled between the parties subsequently, by which the buyer would have to modify its corporate tax base in accordance with Section 18 of Act LXXXI of 1996 on Corporate Tax and Dividend Tax (hereinafter referred to as “CorpTx. Act”) on account of the purchase, if the difference would not be shown in the books under adjusted costs. (Szt. Section 47 (10))
Adjustment of net sales revenue based on retrospective settlement
(4) * Net sales revenue shall be adjusted by the difference between the fair market price and the consideration applied settled between the parties subsequently, by which the supplier would have to modify its corporate tax base in accordance with Section 18 of the CorpTx. Act on account of the sale, if the difference would not be shown in the books under adjusted net sales revenue. (Szt. Section 73 (4))
Adjustment of expenses and charges based on retrospective settlement
Pursuant to Szt. Section 78 (8), (8) * The costs, expenses declared - as appropriate - shall be adjusted by the difference between the fair market price and the consideration applied settled between the parties subsequently, by which the person to whom the services are supplied would have to modify his corporate tax base in accordance with Section 18 of the CorpTx. Act on account of the services received, if the difference would not be shown in the books under adjusted costs and expenses of services received.
The difference between the fair market price and the consideration applied adjusts the corporate income tax base (taking into account transfer pricing regulations) if this difference is not recorded in the accounting records until the balance sheet date.
From when must it be applied?
The amendment must be applied mandatorily for the financial year starting in 2026, but taxpayers may also opt to apply it already in 2025.
For assistance with transfer pricing matters, please feel free to contact our tax advisors!
Clarification of the foreign currency conversion rule in the Accounting Act
The wording of the Accounting Act was amended in Szt. Section 60 (5). Previously it referred to “based on the information published in a national daily newspaper on the exchange rates of the world’s currencies." This is replaced by the following: “in such cases, the value converted into foreign currency at the free market exchange rate of the currency must be translated into HUF at the average of the foreign exchange buying and selling rates quoted by the chosen credit institution, or at the official foreign exchange rate published by the Hungarian National Bank, or the European Central Bank.”
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