Hungary: Advertisement tax suspended indefinitely
Under Act XIV of 2026
Act XIV of 2026 (Hungarian), which was published on May 14, 2016, suspends the advertising tax indefinitely.
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. (IV. 23.) (Hungarian), published on April 23, 2026, was set to temporarily reduce the advertisement tax rate to 0% effective July 1, 2026, during any state of emergency declared in response to the armed conflict and humanitarian catastrophe occurring in Ukraine (read TaxNewsFlash).
For more information, contact a KPMG tax professional:
Philippe Stephanny | philippestephanny@kpmg.com
Chinedu Nwachukwu | chinedunwachukwu@kpmg.com