Hungary: Advertisement tax regime temporarily suspended
The advertisement tax rate is reduced to 0% from July 1, 2026, during the state of emergency.
Government Decree 87/2026. (IV. 23.) (Hungarian), published on April 23, 2026, reduces the advertisement tax rate to 0% effective July 1, 2026. This reduction applies during the state of danger declared by Government Decree 424/2022. (X. 28.), which established a state of emergency in response to the armed conflict and humanitarian catastrophe occurring in Ukraine.
Background
The Hungarian Parliament on November 19, 2025, adopted measures to reinstate the advertisement tax regime effective July 1, 2026, ending the current suspension on June 30, 2026 (read TaxNewsFlash). From that date, media publishers and service providers, whether resident or nonresident, must pay a 7.5% primary ad tax on net ad revenue (with an exemption for the first HUF 100 million), and advertisers may incur a 5% secondary ad tax on ad costs if they cannot prove that the publisher meets ad tax obligations (with an exemption up to HUF 2.5 million).
The rules apply broadly to TV, radio, press, outdoor, and online ads that target Hungarian audiences, especially when content or targeting is predominantly in Hungarian. All relevant businesses must register within 30 days of starting taxable activity, pay annual tax with advance and top-up payments, and face escalating penalties—including fines up to HUF 10 million and potential audits—if they fail to register, declare, or file correctly.
Government Decree 87/2026
The decree in practice suspends the application of the advertisement tax and further clarifies that any tax liability will not be applied even to tax liabilities arising after June 30, 2026. The state of emergency is set to end on May 13, 2026. In the past, the state of emergency has been extended several times and it will thus be up to the newly elected government, once in office, to decide whether to extend it.
For more information, contact a KPMG tax professional:
Philippe Stephanny | philippestephanny@kpmg.com
Chinedu Nwachukwu | chinedunwachukwu@kpmg.com