Hungary: Proposed legislation to implement EU Recovery and Resilience Facility submitted to Parliament
Proposed legislation would introduce changes affecting trusts, corporate tax incentives, VAT compliance, and customs rules.
The government on July 17, 2026, submitted to Parliament its first comprehensive package of proposed tax legislation aimed at implementing commitments linked to the EU Recovery and Resilience Facility (RRF).
The proposed legislation remains under parliamentary discussion and may be amended before enactment. The government is also expected to submit an additional tax package later in 2026.
Individual (personal) income tax
The proposed legislation would revise the tax treatment of trusts and private foundations. Key changes include:
- Repeal of the current five-year tax exemption regime
- Treatment of certain distributions as dividend income, including distributions financed not only from accumulated profits but also from the initial capital of a trust or private foundation
- New rules taxing certain free or preferential use of trust or foundation assets by beneficiaries
- New annual reporting obligations for trustees and private foundations beginning with the 2026 tax year
- Potential taxation of crypto assets transferred into trusts
- Expanded tax authority audit powers for trust arrangements and private foundations
Corporate income tax
The proposed legislation would phase out several corporate income tax incentives, including:
- Tax base allowances related to protected historic monuments, effective January 1, 2027
- The growth tax credit regime for new credits generated from 2027
- Tax benefits related to public-interest asset management foundations (KEKVAs), including the enhanced deduction for certain university support
VAT
The proposed legislation provides that current requirements for reporting incoming invoice data on VAT return "M sheets" would continue after July 1, 2026. However, VAT returns would be submitted exclusively through the eVAT (eÁfa) system beginning January 1, 2027.
Customs
The proposed legislation would:
- Repeal the customs exemption for consignments valued at no more than €150
- Require customs notifications to include both import VAT and customs duty information
- Introduce transitional provisions for payments and repayments of amounts of €10 or less
- Clarify authentication requirements for electronically submitted customs declarations and electronically issued customs decisions
Additional measures
Other tax proposals concern:
- Environmental pollution fee
- “Robin Hood” tax
- Retail tax
- Taxes to be repealed
Read an August 2026 report prepared by the KPMG member firm in Hungary