Act LIV of 2025 introduces updated tax rates, increased VAT thresholds, and new regulations across retail, financial, insurance, and energy sectors, along with enhanced R&D deductions. 

Hungary has published Act LIV of 2025 in the Official Gazette on 19 June 2025, addressing specific tax obligations and amendments to various tax laws.

Here’s a summary of the key measures from Hungary’s Act LIV of 2025:

Pillar 2 global minimum tax rules

  • The deadline for the taxpayer status declaration under the Pillar 2 global minimum tax rules has been extended. It is now due by the last day of the second month following the end of the tax year, instead of the previous deadline of 12 months from the tax year’s start date.
  • An HUF 10 million penalty has been introduced for incomplete, incorrect, delayed, or false data reporting.

Advance pricing agreements (APAs)

The APA fees have been increased, effective 1 August 2025:

  • APA preliminary consultation: HUF 1 million.
  • Unilateral APA request: HUF 10 million.
  • Bilateral or multilateral APA request: HUF 14 million.

Retail (turnover) tax rates

These rates are incorporated into law (previously under decree) for tax years 2025 and 2026:

  • Up to HUF 500 million: 0%
  • Over HUF 500 million up to HUF 30 billion: 0.15%
  • Over HUF 30 billion up to HUF 100 billion: 1.0%
  • Over HUF 100 billion: 4.5%

Retail tax rates for motor fuel retail activities 

  • Up to HUF 500 million: 0%
  • Over HUF 500 million: 3%

Extra profit tax (windfall tax) on credit and financial institutions

These tax rates have been incorporated into law (previously under decree):

  • For 2025: 7% on the part of the tax base not exceeding HUF 20 billion and 18% on the excess.
  • For 2026: 8% on the part of the tax base not exceeding HUF 20 billion and 20% on the excess.

Progressive surcharge (surtax) on insurance premiums for insurance companies

These tax rates are incorporated into law (previously under decree) for tax years 2025 and 2026:

  • Non-life insurance: 3% on premiums up to HUF 48 billion and 14% on premiums exceeding HUF 48 billion.
  • Life insurance: 2% on premiums up to HUF 48 billion and 6% on premiums exceeding HUF 48 billion.

VAT exemption threshold for small businesses

From 2025, the VAT exemption threshold for small businesses will increase from HUF 12 million to HUF 18 million.

Preliminary consultation for advance tax ruling requests

Starting 1 August 2025, a preliminary consultation option for advance tax ruling requests will be reintroduced with a fee of HUF 1 million. Additionally, fees for advance tax ruling requests will increase as follows:

  • Standard agreements (contracts): HUF 12 million (standard) or HUF 16 million (expedited).
  • Other cases: HUF 10 million (standard) or HUF 14 million (expedited)

Tax reductions based on increased holdings of qualifying government securities

For credit and financial institutions:

  • Extra profit tax may be lowered by 10% of the increase in holdings, but not exceeding 50% of the tax due, for both 2025 and 2026.
  • For insurance companies, the surcharge (surtax) on insurance premiums may be reduced:
    • By 30% of the increase, but not exceeding 40% of the tax due for 2025.
    • By 60% of the increase, but not exceeding 40% of the tax due for 2026.

Robin Hood tax on energy suppliers

The Robin Hood tax on energy suppliers is now established by law, with a rate of 41% in 2025, decreasing to 31% in 2026

R&D activities 

Starting from the 2025 tax year, the maximum R&D deduction for activities conducted with higher education institutions and research institutes will increase from HUF 50 million to HUF 150 million.