Spring Tax Package 2025

The Hungarian Government’s Spring Tax Package adopted on 11 June 2025 introduced significant changes to tax legislation, aligning with international standards and strengthening domestic revenue strategies. The 91-page draft bill proposes multiple structural reforms to Hungary’s tax system. Several provisions previously regulated by Government decrees, such as the retail surtax and insurance tax, will now be incorporated directly into law. Additionally, new regulations are introduced and existing ones revised.

Global Minimum Tax and Accounting Act

The global minimum tax, also known as the “top-up tax,” applies when the effective tax rate in a jurisdiction where a multinational enterprise (MNE) operates falls below 15%. In Hungary, affected group members must pay a domestic top-up tax to meet this minimum threshold. Companies subject to this obligation must notify the tax authority within 12 months from the start of the applicable tax year. For example, calendar-year taxpayers had until 31 December 2024 to submit their declaration via the ONYA platform using the GLOBE form.

The Spring Tax Package extends the notification deadline for top-up tax obligations to the end of February following the tax year, replacing the original December deadline. Furthermore, the scope of the HUF 10 million administrative penalty will be broadened to cover incomplete, erroneous, or false data submissions related to the domestic top-up tax. However, transitional relief will apply to tax years starting before 31 December 2026, exempting these from penalty enforcement.

Another key change is an amendment to the Accounting Act, requiring companies to recognize the estimated domestic top-up tax liability as a deferred expense in their financial statements. This deferred item will be reversed once the final tax liability is determined. Although this rule takes effect on 1 January 2026, many companies have already adopted this practice in their 2024 financial reports; the new law aims to codify this existing behaviour.

Windfall Taxes: Alongside international tax compliance measures, the Government emphasizes maintaining windfall taxes introduced in previous years. These “extra-profit taxes” are expected to generate HUF 530 billion revenue in 2026. Elevating these taxes to statutory law aims to enhance legal certainty for the affected sectors.

Banking Sector: The bank levy will continue in 2026, with an 8% rate applied to the first HUF 20 billion of the tax base and 20% above that threshold up from 7% and 18%, respectively, in 2025. Banks increasing their holdings of Hungarian Government securities may qualify for tax relief.

Small Businesses: The bill raises the VAT exemption threshold for small businesses (already applicable from January 2025), allowing exemption if their annual turnover does not exceed HUF 18 million, up from the previous HUF 12 million.

E-Cash Register Regulations: Enforcement measures are also being tightened. For instance, if a company breaches e-cash register regulations, the National Tax and Customs Administration (NAV) may shut down the business premises for up to 12 days or impose fines up to HUF 10 million.

Energy Sector: The special income tax on energy providers, currently set at 41%, will be reduced to 31% in 2025. Public utilities responsible for collecting household wastewater outside the central sewage system will be exempted from their current tax obligations.

Financial Transaction Tax: The financial transaction tax will be extended to include payment services conducted by electronic money institutions. Accordingly, such institutions must now also pay the transaction levy on operations performed for their customers.