Corporate - Significant developments

Last reviewed - 18 July 2022

The following significant changes were recently introduced in the Hungarian tax system. The changes are mainly related to corporate income tax (CIT), personal income taxes (PITs) and related contributions, and indirect taxes.

Please note that COVID-19 related temporary measures are excluded from WWTS Hungary and detailed on this page of PwC Hungary.

Corporate income tax 

Settling corporate income tax liabilities in USD/EUR

The detailed rules regarding the option to settle Hungarian corporate income tax liabilities in USD and EUR were published on August 9, 2022 in the Hungarian Official Gazette. According to the rules, taxpayers shall notify the tax authority on their intention to pay their tax liabilities in USD or EUR on the official form to be made available for this purpose before the first day of the last month prior to the tax period (e.g., if the tax period starts on January 1, 2023, the declaration shall be made by December 1, 2022 the latest).

It should be pointed out that the declaration relates to the entire tax period, as the decision cannot be changed until the beginning of the following tax period. Consequently, this option is not applicable for the current tax period's tax advances, but only for tax settlements paid in relation to tax periods starting after September 30, 2022. Please note that the option of paying taxes in EUR or USD is currently only available for corporate income tax contrary to the previous unofficial announcement, where local business tax was also mentioned.

The corporate income tax settlements (including tax advances) with respect to tax period affected by the declaration should be transferred to an account opened for foreign currency tax payments maintained by the Hungarian Treasury in the currency corresponding to the declaration. If the transfer is made in a different currency other than the one mentioned in the declaration, the costs of the conversion shall be borne by the taxpayer. The transferred USD or EUR amount will be credited to the taxpayer's tax account in HUF based on the Hungarian Central Bank’s exchange rate on the day of the transaction. On days when the Central Bank does not publish exchange rates, the last published rate should be applicable.

Reversed hybrid structures

From 1 January 2022, the respective rules of the European Union's (EU's) Anti-Tax Avoidance Directive II (ATAD II) will be implemented in relation to reverse hybrid mismatches.

If a hybrid entity does not qualify as a tax resident in Hungary under the general rules but it has an establishment or a registered office there, it will become a Hungarian tax resident, provided that the hybrid entity’s majority owner or shareholder has tax residency in a state that considers the Hungarian hybrid entity as a taxpayer of corporate tax or other equivalent tax.

The income of such a hybrid entity is taxed to the extent it is not taxed by the Hungarian or other country’s tax legislation.

The rules are not applicable for investment funds or other collective investment fund vehicles that have a wide, diverse portfolio of securities and whose investors are subject to investor protection regulations in Hungary.

Development reserve

Development reserve may be created at up to 100% of the pre-tax profit, and the annual maximum value of the reserve is also abolished.

Development tax incentive

With an effective date of 21 March 2022, aid intensity will be 30% in Budapest, 45% for Northern Hungary, Northern Great Plain, Southern Great Plain, Southern Transdanubia, Central Transdanubia, Western Transdanubia or Pest region.

Real estate transfer tax

The qualification of real estate holding companies for transfer tax purposes shall be determined based on the latest available balance sheet, but the book value of properties acquired between the latest balance sheet date up to the date of the transfer shall also be included.

Special tax on financial institutions

With effect from 2022, venture capital fund managers and stock exchanges are exempted from the special tax liability of financial institutions.

Extra profit tax

The Hungarian Government issued a decree on Extra-profit  in relation to the following tax types (both newly introduced and extended taxes are included in the following list):

  • Extra-profit tax on the producers of petroleum products
  • Extra-profit tax on producers subject to the KÁT and METÁR Decrees entitled to mandatory take-          over and on producers eligible for green premium-type aids
  • Contribution of commercial airlines
  • Energy suppliers’ income tax (Robin Hood tax)
  • Extra-profit tax on pharmaceutical distributors
  • Mining royalty
  • Surtax on credit institutions and financial enterprises
  • Financial transaction tax
  • Insurance surtax
  • Company car tax
  • Telecommunication surtax
  • Surtax on retail tax
  • Excise duty
  • Public health product tax
  • Simplified employment

Local business tax (LBT)

Tax allowance

In the tax year ending in 2022, micro, small, and medium-sized businesses have been granted with a preferential LBT rate. The maximum level of the LBT rate is 1%, even if a higher tax rate is set forth in the municipal decree.

Building tax

Advertising media placements

As of 1 January 2021, advertising media placements on real estate properties are not subject to building tax.

Value-added tax (VAT)

New reporting obligation on payment service providers

Starting from 1 January 2024, payment service providers shall keep records of certain intra-Community transactions and report this data to the tax authority.

New exemption for military use

As of 1 July 2022, VAT exemption shall be applicable on the importation of goods by the armed forces (and the civilian staff accompanying them) of Member States other than Hungary, when such forces take part in defence effort carried out for the implementation of a Union activity under the common security and defence policy.

Major changes in the Electronic Road Freight Control System (EKAER)

As of 1 January 2021, the range of product to be reported has narrowed since EKAER numbers need to be requested only in case of transportation of risky products on the road. This means that if a product not included on the list of risky products is being transported on the road, EKAER obligation will not arise. Going forward, as of 1 January 2021, simplified reporting could be made on risky products as well.

New rules are coming into force in terms of sanctions: the 40% penalty on the transported goods might only be assessed in case of incomplete reporting or when the reporting is made incorrectly regarding the weight or value of the goods (other mistakes in the reported data results in a default penalty of HUF 500,000).

As of 1 January 2021, reliable taxpayers are not required to provide EKAER risk deposit; furthermore, no risk deposit is required for requesting EKAER numbers for products with the 5% reduced VAT rate.

Also, from 1 January 2021, individual road exemption can be requested for all traffic directions, and the permit will be valid until revoked.

As the Government Decree 403/2021 was published on 8 July, the scope of products subject to the EKAER reporting has been temporarily re-extended. According to the Decree, from 9 July the transport of raw materials and products of strategic importance for the security of supply of the construction industry are also subject to EKAER reporting.

For the sake of clarity, we note that this newly implemented rule has not extended the scope of risky products, but, in addition to them, it has included among the products to be reported the listed raw materials and products for construction. Also, in relation to these new products to be reported, no EKAER guarantee has to be provided. Please note, however, that although the taxable persons concerned are exempted from providing EKAER guarantee, they will still be subject to penalties for failure to submit an EKAER declaration.

The above-mentioned temporarily extended scope shall be applied until the end of October 2022.

The Advance Electronic Licence Registration System (BIREG)

On 1 January 2021, the amendment to the Government Decree 261/2011 introduced the BIREG system, which requires electronic registration of all international carriage of goods by road under bilateral or multilateral (CEMT) transport licences and the registration of inland cabotage carried out under Community licence. (Inland cabotage means carriage of goods with non-Hungarian registered vechicle under Community licence between two points of Hungary. Other international carriage of goods  between EU-EU relation under Community licence do not fall under the BIREG obligation.) The mandatory use of the electronic BIREG system means administrative tasks for the transporters (even if they are not registered in Hungary), for economic operators transporting their own goods, and for the places of loading and unloading as well.   

The BIREG registration regarding carriage of goods under bilateral or multilateral (CEMT) transport licences is mandatory in case of vehicles with a maximum laden mass of more than 3.5 tonnes. Regarding the inland cabotage the weight rules on vechicles has changed recently.  Based on the EU regulation 1072/2009 from 21 May 2022, all vehicles with a maximum laden mass of more than 2.5 tonnes that are registered in the European Union and used for transportation of goods must obtain Community licence. As the Government Decree 261/2011 refers to EU regulation 1072/2009, from 21 May 2022 BIREG registration is mandatory for inland cabotage with vehicles with a maximum laden mass of more than 2.5 tonnes.The BIREG obligation regarding bilateral or multilateral (CEMT) transport licences did not change.   

The importance of using the BIREG system is emphasized by the fact that failure to perform the obligations may result in the imposition of a fine of HUF 800,000 in case of transporters and HUF 300,000 in case of places of loading and unloading.

Excise duties

The duty rates of most excise goods will increase from 1 July 2022 as follows.


Energy products


Old tax rate

New tax rate

Fuel oil (if offered, sold or used as a heating fuel)

HUF 4,655 per thousand kilograms

HUF 5,375 per thousand kilograms

LPG (if offered, sold or used as a propellant for equipment other than motor vehicles)

HUF 12,725 per thousand kilograms

HUF 14,685 per thousand kilograms

Natural gas (if offered, sold or used as fuel for road vehicles)

HUF 28/nm3

HUF 32/nm3

Natural gas (in other cases)

HUF 0.3038/kWh

HUF 0.3492/kWh


HUF 310.50/MWh

HUF 358.50/MWh


HUF 2,516 per thousand kilograms

HUF 2,905 per thousand kilograms


Alcoholic products


Old tax rate

New tax rate

Beer (produced in a micro-brewery)

HUF 810/ hectolitre/degree of actual alcoholic strength

HUF 900/ hectolitre/degree of actual alcoholic strength

Beer (other)

HUF 1,620/ hectolitre/degree of actual alcoholic strength

HUF 1,800/ hectolitre/degree of actual alcoholic strength

Sparkling wine

HUF 16,460/hectolitre

HUF 18,100/hectolitre

Other still fermented beverages

HUF 9,870/hectolitre

HUF 10,900/hectolitre

Other sparkling fermented beverages

HUF 16,460/hectolitre

HUF 18,100/hectolitre

Intermediate alcohol products

HUF 25,520/hectolitre

HUF 28,100/hectolitre

Distilled spirits (over 50 litres or for sale to a non-tax warehouse)

HUF 333,385/hectolitre of pure alcohol

HUF 565,840/hectolitre of pure alcohol

Alcohol products

HUF 333,385/hectolitre of pure alcohol

HUF 565,840/hectolitre of pure alcohol


Tobacco products


Old tax rate

New tax rate

between 1 July 2022 and 31 December 2022

New tax rate

from 1 January 2023


HUF 26,000 per thousand pieces and 23 percent of the retail selling price, but not less than HUF 39,300 per thousand pieces

HUF 27,800 per thousand pieces and 23.5 percent of the retail selling price, but not less than HUF 40,800 per thousand pieces

HUF 29,500 per thousand pieces and 24 percent of the retail selling price, but not less than HUF 41,800 per thousand pieces

Cigars, cigarillos

14 percent of the retail selling price, but not less than HUF 4,400 per thousand pieces

14 percent of the retail selling price, but not less than HUF 4,620 per thousand pieces

14 percent of the retail selling price, but not less than HUF 4,840 per thousand pieces

Fine-cut smoking tobacco and other smoking tobacco

HUF 23,600 per kilogram

HUF 24,780 per kilogram

HUF 25,960 per kilogram

Refill liquids

HUF 30 per millilitre

HUF 31.5 per millilitre

HUF 33 per millilitre

Disposable products in new categories of tobacco products containing or consumed with tobacco

HUF 15/piece

HUF 35/piece

Fluids in new categories of tobacco products containing or consumed with tobacco

HUF 70 per millilitre

HUF 70 per millilitre

Smokeless tobacco products

HUF 23,600 per kilogram

HUF 24,780 per kilogram

HUF 25,960 per kilogram

Smoking substitutes containing nicotine

HUF 23,600 per kilogram

HUF 24,780 per kilogram

HUF 25,960 per kilogram

Public health product tax

The tax rates for products subject to the public health products tax will increase, and the scope of the tax will be extended to include several new product categories.

For several categories of products, the definition of taxable products will be expanded; for example, products falling under additional customs tariff numbers or containing ingredients that have not yet been specified will also be taxable.

The tax rates applicable from 1 July 2022 are as follows:


Old tax rate

New tax rate

Soft drinks (excluding syrups)

HUF 15 per litre

HUF 8 or 23 per litre*


HUF 240 per litre

HUF 105 or 310 per litre*

Energy drinks

HUF 50 or 300 per litre

HUF 65 or 390 per litre

Pre-packaged sugary products (excluding cocoa powder)

HUF 160 per kilogram

HUF 65 or 210 per kilogram*

Cocoa powder

HUF 85 per kilogram

HUF 40 or 110 per kilogram

Salty snacks

HUF 300 per kilogram

HUF 390 per kilogram

Food flavouring

HUF 300 per kilogram

HUF 390 per kilogram or HUF 390 per litre

Flavoured beer

HUF 25 per litre

HUF 10 or 33 per litre*

Alcopops (“alcoholic refreshments”)

HUF 25 per litre

HUF 10 or 33 per litre*


HUF 600 per kilogram

HUF 260 or 780 per kilogram*


New category

HUF 65 or 210 per kilogram*

Pre-packaged sweet or savoury pasta

New category

HUF 65 or 210 per kilogram*

* depending on sugar and sweetener content

Social tax

The social tax – payable by the employers after employment income – is 13%.

Advertisement tax

From 1 July 2019, provisionally until 31 December 2022, the advertisement tax rate is reduced to 0%, and taxpayers subject to the advertisement tax do not have to fulfil their reporting and filing obligations during this period.