Autumn tax package

In terms of corporate income tax, the new legislative changes relate to tax benefits for supporting spectator team sports.

Support can now be provided to national sports associations for the operational costs of sports facilities, including ongoing sports development programs at the time the law comes into effect. The total value of support certificates can cover up to 80% of the costs, but is capped at the HUF equivalent of EUR 2,200,000 for each sports-related real estate and for each support period.

For sports development programs that include investments in tangible assets aimed at property development, a longer deadline is applicable (under certain conditions) for the purpose of putting them into operation.

The deadline for the minister's opinion on sports development programs with a present value of at least HUF 300,000,000 will be extended from 10 days to 45 days.

The tax allowance for grants provided to organizations involved in spectator team sports to cover costs related to emergencies, health crises, and coronavirus defence will be abolished.

Compared to the proposal, the final approved version narrows the scope of data that companies subject to global minimum tax are obliged to report by the end of the year. During the registration due within 12 months from the start of the tax year affected by the top-up tax obligation, only certain data – not predetermined by law – should be provided to the National Tax and Customs Administration of Hungary by the domestic constituent entity or the designated local entity. Based on the currently available form, this data reporting is limited to information regarding the domestic constituent entities and certain details about the ultimate parent entity.

Changes affecting tax base allowances

Contrary to previous regulations, the tax base allowance for first-time married couples and individuals under the age of 25 years may now only be claimed by citizens of the European Economic Area (“EEA”) and citizens of non-EEA countries neighbouring Hungary.

The family tax base allowance is now available exclusively to individuals receiving child support or similar benefits within the EEA or in non-EEA countries neighbouring Hungary. We highlight that under the previous legislation, any financial aid similar to Hungarian child support and provided by any foreign state could be recognized.

Housing related expenses

As of 1 January 2025, an employer could give a yearly HUF 1.8 million support to its employees under the age of 35. The sum can be used to pay for house rental fees or their mortgages. The eligibility to this benefit has to be verified by the loan agreement or the rental contract. After the end of a tax year, the employer has to provide specific data to the National Tax and Customs Administration of Hungary about the supported employees, the related property and the purpose of the benefit. The exact details concerning this reporting are stipulated in a separate government decree. If the employee does not use the financial support in accordance with the conditions, they must pay 50% of the benefit they received as a penalty in their tax return.

New SZÉP Card Pocket: Active Hungarians

A new SZÉP Card pocket, called “Active Hungarians”, will be introduced. The annual limit for the pocket will be HUF 120 000, which should be considered in addition to the existing HUF 450 000 recreational allowance. The new pocket is specifically intended to support sports activities, with detailed regulations to be outlined in a forthcoming government decree.

Long-term investment account

An uncapped social tax payment obligation will come into force for all long-term investment accounts that are created after 31 December 2024. Within 3 years from the deposit of funds 13%, between 3-5 years 8% social tax is payable on the yield if there is any withdrawal from the long-term investment account. After 5-year holding period, there is no social tax liability.

In the case of assigning the right of VAT deduction, the importer is not necessarily be required to hold a “reliable taxpayer” status (as well). The indirect customs representative should however carry out an assessment on the importer (“partner audit”) in order to exclude the tax risks.

The first time a partner audit must be carried out is before (and until) concluding the contract on indirect customs representation. Afterwards, it should be carried out until the last day of the month. Criteria on partner audit will be published by the National Tax and Customs Administration of Hungary on its website. Electronic data reporting on the outcome of the partner audit must be met by the 10th day of following month by the indirect customs representative. No partner audit is needed in a month in which no importation takes place with the involvement of the indirect customs representative. Indirect customs representatives will have the opportunity to request data from the National Tax and Customs Administration of Hungary concerning their partners with regard to the general conditions of assigning import VAT deduction and related to the partner audit (whether the condition that the importer is obliged to submit VAT returns monthly is met and if it holds a “reliable taxpayer” status). Further, they will be required to submit itemized data in the VAT returns on each importation.

It is not required to carry out a partner audit if the importer holds an import VAT self-assessment license. In such a case it is not required to check whether the condition of the importer being a monthly VAT reporter is met, either.

The indirect customs representative must still hold a “reliable taxpayer” status. This condition must be met on the date of exercising the right of VAT deduction. There is no change in this respect.

A penalty in lieu of business closure will be introduced for those infringements that have resulted in business closure so far. Accordingly, business closure cannot be applied if the taxpayer resigns its right to appeal against the decision establishing failure and also pays the penalty in lieu of business closure until the required default penalty is due. The amount of the penalty in lieu of business closure is adjusted to the length of the business closure ordered by the National Tax and Customs Administration of Hungary. As a result, in the case of 12-day closure, the default penalty is ten times, i.e. HUF 20 million, and in the case of a 30-day closure the penalty in lieu of business closure is HUF 40 million.

The retail tax base should be adjusted in addition to the net sales revenue deriving from services provided to the suppliers of goods sold and the discount received from such suppliers by a third item, the delivery fee payable by customers indicated on the sales receipt.

Certain rules have been clarified in relation to platform operators:

• Platform operator means both domestic and foreign residents.
• Platform operators shall declare tax advance within 15 days from the start of retail activities conducted through the platform.
• The access restriction to the platform operator’s website in case of not meeting the tax obligations is not included in the final adopted version.    

The specific regulations regarding the termination of special economic zones have been removed from the final act.