The deadline for filing the annual corporate income tax return (CIT return) and settling the related tax liability is approaching. In connection with companies’ corporate income tax obligations, we would like to draw attention to a tax-saving opportunity: the tax offering scheme.
CIT credit
Under tax offering, companies may allocate up to 80% of their corporate income tax liability through the Hungarian tax authority to support film productions and spectator team sports. This not only contributes to the operation of sports clubs and the production of films, but also entitles the company to a tax credit on the allocated amount. This tax credit is then credited by the National Tax and Customs Administration of Hungary (NAV) to the company’s tax account as a tax saving.
CIT offering – no risk involved
The tax offering scheme does not involve any risk, as the entire process is carried out through the state tax authority (NAV). The related administrative process can also be managed through a tax advisor, meaning that, ultimately, the company only needs to sign the relevant support documents. As a result of the 2025 amendment to the rules governing spectator team sports support, the transparency and auditability of the CIT support scheme have further increased, ensuring improved traceability of how the support amount is used.
CIT offering – tax offering is also possible during the year
It is also worth noting that tax offering may be made from corporate income tax advances during the tax year. In this case, an even higher tax credit may be available:
for film support, the tax credit may amount to 7.5% of the allocated amount, while for spectator team sports support, it may amount to 6.5% of the allocated amount.
Our tax advisors can assist not only with the administration of the tax offering process, but also with selecting organizations that have a sports development programme approved by the relevant national sports federation.
