Hungary has extended the zero-rate advertising tax through a government decree citing economic pressures from the Russia-Ukraine conflict, overriding Parliament's November 2025 decision to reinstate the tax at 7.5% from 1 July 2026.
Hungary has gazetted Government Decree No. 87/2026 on 23 April 2026, which maintains the 0% advertising tax rate in effect since 1 July 2019. Without this intervention, the advertising tax would have been reinstated on 1 July 2026.
The new decree ensures the rate remains at 0% of the tax base starting from that date.
The decree stipulates that several administrative and tax-related obligations under the Advertising Tax Act will not apply to tax liabilities arising after 30 June 2026.
The Hungarian government justified this extension by citing the negative impact of the long-standing Russia-Ukraine conflict on the domestic economy. The goal is to ensure that businesses do not face increased financial burdens during this period. These changes are implemented under the Government’s emergency powers and are applicable during the “state of danger” declared in relation to the conflict in Ukraine.
The decree entered into force on 24 April 2026, the day following its publication.
Previously, Hungary’s Parliament reinstated the advertisement tax regime on 19 November 2025, effective 1 July 2026. Media publishers and service providers would pay a 7.5% primary tax on net ad revenue exceeding HUF 100 million, while advertisers would face a 5% secondary tax on ad costs above HUF 2.5 million if they could not prove the publisher’s tax compliance. The tax applied to all advertising formats—TV, radio, print, outdoor, and online—targeting Hungarian audiences, particularly in the Hungarian language. Businesses had to register within 30 days of starting taxable activity and make annual tax payments with advance and top-up instalments. Non-compliance would trigger penalties up to HUF 10 million and potential audits.
