On May 13, 2025, the government submitted its spring tax package in Bill No. T/11920. In this blog post, we summarize the most important changes for businesses, including updates related to windfall taxes, personal income tax, corporate tax R&D incentives, duties, VAT, and the global minimum tax.
Although it has become customary for mid-year tax changes to be introduced each year (as seen on June 11, 2025, alongside decisions on certain tax obligations and amendments to various tax laws), it is worth noting that further significant changes to tax regulations are expected this autumn. For example, new provisions affecting the small business tax (KIVA) will be detailed at that time.
Extra Profit Taxes Are Here to Stay
The extra profit taxes, previously regulated by several different government decrees, will be codified into law starting in 2026. The downside of this development is that it also means these surcharges —originally introduced as temporary measures — will now become a permanent fixture of the Hungarian tax system.
The banking surtax is expected to increase further in 2026: the rate will rise from the current 7% to 8% for tax bases up to HUF 20 billion, and from 18% to 20% above that threshold. However, according to the draft legislation, banks may benefit from additional tax incentives if they further increase their existing holdings of government securities.
Insurers will also be able to benefit from similar additional tax incentives: while they have been able to deduct 30% of the growth from their tax base so far, this is expected to increase to 60% by 2026.
The special tax rate on oil imported from the Russian Federation will remain unchanged at 95%. This means that even if oil producers source crude oil more cheaply from Urals origins, the majority of the price difference between Urals and Brent crude will still go to the state budget.
However, the income tax on energy suppliers (commonly referred to as the Robin Hood tax) could decrease from 41% to 31% starting in 2026. At the same time, public water utility providers would no longer be subject to this tax, a measure intended to support investment in the sector.
Corporate Income Tax – New Reporting Options and More Favorable Tax Incentives
As part of the changes affecting Corporate Income Tax companies that become domestic taxpayers through a cross-border transformation can report their previously acquired shareholdings within 75 days.
The tax bill clarifies that a Spin-off or “leválás” in Hungarian (a subtype of demerger where a new legal entity is created by separating part of the assets of an existing legal entity. Unlike other forms of division, the original entity remains in existence and becomes the sole owner (sole member) of the newly created entity. The ownership does not transfer to the shareholders or members, but stays within the original legal entity itself) qualifies as a preferential asset transfer, and in cases of partial non-performance (where a party to a contract fails to fulfill part of their duties, while still fulfilling other parts), the tax base can be adjusted proportionally.
Additionally, the upper limit for the tax base reduction available for R&D activities will increase to HUF 150 million for companies collaborating with universities in the fields of technology and innovation development.
Personal Income Tax Benefits
Another very significant measure in the summer tax package is the personal income tax exemption for mothers with two and three children, as well as the tax exemption for maternity benefits (CSED) and child care benefits (GYED). The PIT exemption for mothers with three children will be introduced in a single step starting from October 1, 2025, while the exemption for mothers with two children will be phased in starting January 1, 2026.
The bill also enables tax exemption for maternity benefits (CSED), child care benefits (GYED), and adoption allowances starting July 1, 2025.
Limitation Related to Social Contribution Tax
A legal loophole is being closed: starting in 2026, according to the current plans, the social contribution tax exemption for high-earning retired women (with a gross monthly income over HUF 2.5 million or annual income over HUF 30.5 million) will only apply up to four times the average annual wage. For income exceeding this threshold, the payer will be required to pay the 13% Social Contribution Tax. This proposed limitation will not only affect employees but also sole proprietors, agricultural producers, and other self-employed individuals.
Accounting Act – Sustainability Reporting
The Accounting Act has been amended in relation to ESG requirements: the deadline for preparing the sustainability report has been extended by two years. As a result, it will first be required for the fiscal year starting in 2027.
Duty Exemption for Solar and Wind Power Plants Producing Green Energy
An exciting development for green energy investors is that the transfer of solar and wind power plants will become exempt from duty.
Previously, since these structures are typically integrated with real estate, their transfer was considered a real estate transaction and thus subject to duty.
The new exemption applies specifically to the structures themselves (e.g., the solar or wind installations), but not to the land on which they stand or to buildings used for energy storage, which remain subject to duty upon transfer.
New Transaction Levy on E‑Money Accounts
The financial transaction levy is expected to be extended to operations carried out from electronic money accounts (e-money accounts), introducing a new obligation for the affected parties.
Changes Concerning the Global Minimum Tax
Regarding the global minimum tax, the deadline for the notification of supplementary tax liability is changing; the deadline will be extended to the last day of the second month following the tax year.
Furthermore, the bill introduces a new accounting requirement for the passive accrual of the supplementary tax payment obligation.
Tax Administration: Extended Audit Deadlines for Chain Transactions
New regulations apply to the audit deadlines for chain transactions involving multiple taxpayers. In such cases, the tax authority may extend the audit deadline to 365 days for reliable taxpayers, and in certain cases up to 540 days, while for other taxpayers, the deadline may be extended to 540 days from the outset. The sharing of tax secrets between different procedural units of the NAV (Hungarian Tax Authority) will be legally permitted.
Regarding the introduction of the receipt data reporting obligation, the deadline has been extended from July 1, 2025, to September 1, 2026.
Local governments will have the option to exempt general practitioners and health visitors from the local business tax, aiming to make it easier to fill hard-to-staff medical practices.
The tax bill adopted on June 11, 2025, also introduces changes related to Trust structures (Bizalmi Vagyonkezelés), which we will cover in a separate blog post.
