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Publications Overview of the 2025 Summer Tax Act amendments

Overview of the 2025 Summer Tax Act amendments

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​Published on: 05.08.2025 / Reading time approx. 13 minutes


Below is an overview​​ of the key changes in the 2025 Summer Tax Act amendments, many of which will come into effect during t​he year 2025. 

1. Corporate ​​Tax (CT)

Trust and Long-Term Asset Man​​agement

The new definitions entering into force on 1 September place the management forms of asset management foundations under the same tax treatment as fiduciary asset management.

Interpretation of prefe​rential transfers (effective from 20 June)

If the shareholding retention requirement is only partially fulfilled, the acquiring company may apply the corporate tax base adjustment only to the actually derecognized ownership portion.

As of 20 June 2025, the rules on reported participations may also be applied in cases where domestic tax residency is acquired through a cross-border transformation. In such cases, the 75-day period available for reporting is to be calculated from the date of registration by the court of registration. The rule may be applied retroactively from 1 January 2024, provided that any unreported participation is reported within 75 days following the entry into force of the legislative amendment.

As of 20 June, a demerger qualifies as a preferential transformation.

Tax base allowan​​ce for R&D activities (effective from 20 June)

The limit for the tax base allowance that can be claimed for the direct costs of R&D activities carried out in cooperation with higher education institutions, the Hungarian Academy of Sciences, or other designated research centers will increase from HUF 50 million to HUF 150 million.

2. Value-add​​ed tax (VAT)

VAT exempt​​ status

The annual threshold has been increased from HUF 12 million to HUF 18 million as of January 1, 2025. According to the rule effective from July 20, 2025, the movement of own goods is also permitted under the exemption for small taxpayers, with consideration given to the value limit in the calculation.

Expansion of​​ Data Reporting (from 1 January, 2026)

Annex 10 of the VAT Act will be supplemented with data provision requirements related to invoicing of product sales performed by a legal predecessor or a group taxpayer.

Reverse Cha​​rge – Natural Gas (from 1 July)

As of July 2025, for domestic reverse taxation to be applicable in the trading of natural gas between taxable persons, the purchaser must provide a prior written declaration to the seller stating that they are acting as a taxable trader for VAT purposes.

Invoicing for tour op​​erator services (from 1 January, 2026)

As of January 1, 2026, travel organizers will not be required to indicate the tax base and the transferred tax on the invoice, unless the customer declares that they are not using the service as a travel organizer. The obligation to provide data is not affected by the simplification of the invoice content; the VAT base and amount, specified in forints, must still be reported as before.

VAT refund for f​​oreign travellers (effective from 20 June)

As of June 20, 2025, the amendment allows that, in the case of sales to foreign travelers, the certification required for VAT refunds (i.e., electronic data content identical to that of the VAT refund form) may also be authenticated with a digital stamp.

Assignment of the ri​​ght to deduct import VAT (from 1 October)

From 1 October, 2025, the indirect customs representative is required to declare the tax base and the tax amount in forints for each import in relation to the assigned deduction rights.

3. Registration​ Tax

Use of Engine code (fro​​m 1 September)

A technical clarification stating that, effective from 01 September 2025, instead of the engine number previously provided, the authority maintaining the road traffic register will transmit the engine code—more in line with the manufacturer's documentation—to the customs authority for registered passenger cars and motorcycles.

4. Duties Act (A​sset Transfers)

Incentive for Green Inves​tments (effective from 20 June)

No duty is payable on those parts of plots of land that are designated for structures such as solar panels or wind turbines.

Obligation to​ notify (effective from 20 June)

The client or their representative is required to request the imposition of the duty simultaneously with the land registry application, within 30 days.

5. Social Securit​y Contributions (SSC)

Retired Mothers (from ​2026)

If the payer provides income to a retired person who is entitled to personal income tax benefits for mothers, a 13% social contribution tax must be paid on the portion of the income that exceeds four times the annual average wage.

6. Personal Income​​ Tax (PIT)

Increase in Family Tax Allo​wance (from 1 July)

1 child: HUF 100,000 tax base allowance/month, 2 children: HUF 200,000/month and child, 3 or more children: HUF 330,000/month and child.
For severely disabled children + HUF 100,000/month​.

Maternity Benefi​​t (CSED), Child Care Benefit (GYED), Adoption Allowance (from 1 July)

The benefits are subject to neither personal income tax nor pension contribution.
Employment is allowed alongside CSED; in such cases, the benefit remains at 70%

PIT Exemption for ​Mothers with Three Children (from 1 October)

As of October 1, 2025, a new benefit will enter into force, under which mothers raising three children will be fully exempt from personal income tax on certain types of income. The exemption applies to a wide range of incomes included in the consolidated tax base, such as wages from employment, withdrawals by sole proprietors, and income from agricultural activities.

Mothers with Two Ch​ildren (2026–2029)

The personal income tax exemption will be gradually extended from 2026 to include women raising two children. The benefit will be introduced in four phases based on age, rather than all at once:
  • From 1 January, 2026: mothers under 40
  • From 2027: mothers between 40 and 50
  • From 2028: mothers between 50 and 60
  • From 2029, the legally defined incomes of mothers over the age of 60 raising two children will become tax-exempt.

Mothers under 3​0 (from January 1, 2026)

In the case of mothers with multiple children, the tax allowance can be claimed for each child – provided that the mother has not yet reached the age of 30.

The order of applying the allowances changes several times during the year. This can be crucial for those who are entitled to several types of allowances.

Order of Allowances (e.g., for advance tax declaration):



7. Other Pers​​onal Income Tax (PIT) and Contribution Changes

Clarification ​of source of interest income (effective from 20 June)

Precise determination of whether the interest source is domestic or foreign

Tax Exemp​​tion for Family Allowance (effective from 20 June)

The tax exemption has been established by law.

E-bike Benefit (fro​​m 2026)

For private use, the tax exemption limit is 700 W motor power.

Employer Entitlement to Company Housing (effective from 20 June)

A foreign company’s Hungarian branch may provide tax-exempt housing.
The Hungarian branch of a foreign company may also provide tax-exempt housing to its employee, provided that the accommodation is owned or leased by the branch and the employee is directly employed by the foreign company.

Fringe Benefits (from 1 July)​​​​

For benefits received on the „Aktív Magyarok” sub-account, a declaration is required that at least 80% of the benefits received in the previous half-year must be spent in order for new benefits to be granted in the following half-year.

8. Simplified Emplo​yment

Limit on Si​mplified Employment (from 1 July)

Maximum of 120 days per year; verifiable based on data from the tax authority (NAV).

9. Tax authority ​procedures (Act on the Rules of Taxation – "Art." and Act on Tax Administration Procedure – "Air.")

Asset manag​ement foundation – unified taxation (from 1 September)

As of 1 September 2025, assets managed under long-term asset management by asset management foundations will also fall within the scope of the law, thereby harmonizing the tax treatment of assets managed by fiduciary asset managers and those managed under long-term asset management.

Simplified liquid​​ation (from 5 July)

In case of a simplified liquidation, the appointed liquidator shall be the one who fulfills the taxpayer’s tax obligations and exercises the rights to which the taxpayer is entitled.

Rates of consultation and other fees (from 1 August)

Among others:
  • Consultation fee: HUF 0.5 → 1 million per occasion
  • Assessment of standard contracts: fee HUF 10 → 16 million
  • Expedited procedure: HUF 12 → 14 million
  • Arm’s length price procedure: unilateral HUF 8 → 10 million, multilateral HUF 12 → 14 million.

Penalty for u​​ndeclared employment (effective from 20 July)

If the employer fails to report a simplified employment relationship but fulfills their declaration and contribution payment obligations on time and before the start of the audit, and rectifies the employee registration within the deadline for submitting comments on the audit report, then the state tax authority will not impose a default penalty.

Global minimum​ tax data reporting fee (effective from 20 July) 

The HUF 10 million default penalty also applies to failure to provide data.

Late paym​ent interest and payment relief (effective from June 20)

Interest-free installment payment can be requested up to HUF 2 million (previously HUF 1 million).
For a “Reliable taxpayer,” relief can be requested for tax debts up to HUF 5 million (previously HUF 3 million).

Extension​​ of Audit (effective from 20 June)

Reliable taxpayer: maximum 365 days, 540 days in other cases.

Global minimum​ tax notification (effective from 20 June)

The notification must be submitted by the end of the second month following the end of the tax year.

10. Sector​-specific special tax: Energy providers

Income t​​ax rate

2025: 41% → as of 1 January, 2026: 31%.

11. Acc​ounting

The expected amount of the top-up tax for the financial year under the global minimum tax must be recognized as a deferred liability (accrued expense). The deferral must be reversed upon the final declaration of the top-up tax.


If you have any questions regarding the change​​s, we are happy to assist you.

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