Hungary’s draft autumn tax package, presented on 14 October 2025, proposes adjustments across corporate, VAT, insurance, retail, and advertisement taxes—including R&D incentives, global minimum tax compliance, reduced VAT on beef, streamlined insurance notifications, and a shortened advertising tax suspension.
Hungary’s government has presented draft Bill No. T/12801 (autumn tax package) to the parliament on 14 October 2025, which contains modifications of various tax laws.
The Ministry for National Economy has unveiled its draft autumn tax package for public consultation, introducing several proposed changes across various tax categories.
Key highlights include adjustments to corporate income tax, such as reducing the reconsideration period for new R&D tax incentives from six to five years and allowing R&D activities involving certain state-related institutions to qualify for the standard tax incentive rate, capped at HUF 500 million.
For the global minimum tax, the package outlines guidance on a simplified effective tax rate (ETR) test to determine transitional safe harbour eligibility. To enforce compliance, specific penalties are introduced: a HUF 5 million fine for missing or late notification obligations, and a HUF 10 million fine for missing, late, incomplete, or false data reporting or declaration obligations related to the minimum tax.
Concerning value-added tax (VAT), the proposals include permitting the appointment of a VAT group representative in specific cases and introducing joint and several liability for VAT breaches among group members. Additionally, changes are suggested for VAT registration processes, self-audits, and the amendment or withdrawal of taxpayer applications.
Accounting rules are clarified regarding transfer pricing. When related parties voluntarily make transfer price adjustments within the arm’s length range to avoid corporate tax base correction, these adjustments are not required to be mandatorily adjusted to the median value for accounting purposes, ensuring compatibility with the Corporate Tax Act.
The insurance tax would see life insurance premiums included in the advance payment base for supplementary insurance premium tax. Meanwhile, the retail tax proposal extends special tax rates for retail motor vehicle fuel sales to tax years beginning in 2026.
Lastly, the advertisement tax rate of 0% is set to remain in place until 31 December 2026.
The draft Bill mostly aligns with the version released for public consultation in early October, though it includes some minor changes.
The changes are as follows:
Reduced VAT on beef and offal
Starting 1 January 2026, the VAT rate for the sale of beef and related offal will be lowered from 27% to 5%.
Adjusted advertising tax suspension
The suspension period for the advertising tax has been shortened, now set to end on 30 June 2026 instead of 31 December 2026.
Streamlined insurance notifications
A new legal framework will allow notifications for the establishment or termination of insurance relationships abroad to be submitted via the tax authority’s electronic administration platform and mobile application.
