Introduction of the Global Minimum Tax
As of January 1, 2024, the global minimum tax came into effect, requiring domestic group members to notify the National Tax and Customs Administration (NAV) of their tax liability status. The notification deadline is December 31, 2024. Additionally, taxpayers subject to the global minimum tax must declare and pay a top-up tax advance (QDMTT) by the 20th day of the 11th month following the tax year. For calendar-year taxpayers, the first deadline is November 20, 2025.
Increase in Family Tax Allowance
Starting July 1, 2025, tax and social contribution benefits for families raising children will increase by 50%, and from January 1, 2026, they will rise by another 50%. For example, the current HUF 10,000 allowance per child will increase to HUF 15,000, then to HUF 20,000.
Expansion of Personal Income Tax (PIT) Exemption
From October 2025, mothers with three children, and from January 2026, mothers under 40 with two children will be exempt from paying personal income tax (PIT). This measure represents a significant financial relief for families.
Changes to Vehicle Tax and Company Car Tax
From 2025, the company car tax will increase by approximately 20%, and both vehicle and company car taxes will follow an inflation-indexed adjustment rule. Furthermore, tax exemptions and reductions previously applied to plug-in hybrid and hybrid vehicles will be abolished.
Expansion of the Retail Tax
As of January 1, 2025, platform operators, both domestic and foreign, are included among those subject to the retail tax. This means entities operating digital platforms and having contractual relationships with sellers are liable to pay tax on the net turnover from goods sold via their platforms.
Changes to Local Taxes
In 2025, municipalities have amended various local taxes, and in some areas, new taxes have been introduced. One important revenue source for tourist destinations is the tourism tax, levied on accommodation providers operating in the municipality. Most municipalities determine this as a fixed amount per guest per night. The statutory maximum in 2025 is HUF 804.5, and higher rates—whether fixed or percentage-based—cannot be applied.
These changes may significantly impact financial planning for both businesses and individuals. It is advisable to thoroughly review the details and consult our tax expert if needed.