Rules of monthly late payment fee in Hungary from 2025 – what has changed?
Previously, late payment penalty had to be paid on an annual basis in a lump sum – typically by 15 November of the year following the tax year. However, from 2025, the tax authority has introduced a new system: instead of an annual one-time charge, the late payment fee is imposed monthly on the tax account.
Late payment penalty 2025 in Hungary – key dates and deadlines
- Late payment fee for the year 2024 (calculated on a net basis for late payments of 2024 tax liabilities) had to be paid by 31 March 2025 – this is six months earlier than the previously usual deadline of 15 November.
- Late payment penalty for the months of January to March 2025 must already be paid in April 2025.
- Starting from April, late payment fee for the given month must be paid by the 20th day of the following month.
Only penalty reaching HUF 5,000 is charged
A practical detail worth noting is that the tax authority will continue to charge late payment penalty to the tax account only if the amount reaches HUF 5,000.
What is the rate of late payment fee?
The rate of late payment penalty has not changed: it is the central bank base rate + 5 percentage points, calculated on a daily basis (i.e. 1/365th of the annual interest rate per day). In the current high base rate environment, this can particularly affect businesses struggling with financial difficulties.
Impact of the change on the company’s liquidity
Until now, businesses had the option to settle their late payment fee obligations only at year-end. Switching to a monthly system means that companies will now need to account for late charges on a monthly basis, requiring changes in financial planning and cash-flow management.
This may be particularly challenging for businesses with seasonal income or periodic payment obligations.
I WISH TO CONTACT A TAX ADVISOR
There is a solution: payment facilities and tax advisory services
In the new system, it becomes especially important to request payment relief or payment facilities (such as deferred payment or payment by instalment) in time. The good news is that late payment penalty no longer accrues further interest, so requesting such facilities can reduce the financial burden on the business.
To ensure professional preparation of requests to the tax authority, it is recommended to involve a tax advisor who can help compile the documentation, formulate appropriate justifications, and communicate effectively with the tax authority.
How can RSM Hungary help?
RSM Hungary’s experienced tax experts keep up to date with changes in the tax authority’s practice and provide complex support to companies:
- Compiling and submitting payment facility requests
- Regular monitoring of the tax account, timely identification of additional tax liabilities
- Tax planning and cash-flow advice to minimise liquidity impacts
- Representation in proceedings before the tax authority.
