This article provides an overview of the key Hungarian tax and reporting changes taking effect from 2025–2027, highlighting new incentives, stricter rules and important compliance deadlines. The main topics covered are: Corporate Income Tax, Value Added Tax, Special Tax on Energy Suppliers, Retail Tax, and Accounting and Reporting obligations.
Corporate Income Tax (CIT)
New development tax incentive for clean technologies
From 2026, a new development tax incentive will be available for investments that create or expand manufacturing capacity for so-called “clean technologies”. This measure is intended to support environmentally friendly industrial investments and long-term sustainable production.
New tax incentive for environmental investments
A new corporate tax incentive will also be introduced for investments and renovations aimed at environmental protection. These include projects designed to eliminate environmental damage or serve other specific environmental objectives.
Changes to R&D tax incentives
The rules for research and development tax incentives will become more restrictive in certain cases. Currently, companies can deduct up to 100% of eligible R&D costs (with a maximum of HUF 500 million) when the R&D activity is carried out jointly with certain research institutions, such as institutes of the Hungarian Academy of Sciences or state-owned research organizations.
Under the new rules, the maximum amount remains unchanged, but the usable tax benefit will depend on the type of research:
For basic research, the tax incentive will remain at 100% of eligible costs.
For applied (industrial) research, the deductible amount will be reduced to 50%.
For experimental development, only 25% of eligible costs can be deducted.
This means companies involved in applied research or development projects may see a noticeably lower tax benefit than before.
Corporate tax advance payments
The threshold for quarterly corporate tax advance payments will increase from HUF 5 million to HUF 20 million. As a result, more companies will be able to pay tax advances quarterly instead of monthly, improving cash-flow planning and reducing administrative burden.
VAT (Value Added Tax)
Mandatory electronic receipts
From 1 September 2026, the use of electronic receipts will become mandatory. This change affects cash register systems, POS hardware, software solutions and reporting obligations. Businesses should start preparing early, as system upgrades or replacements may be required.
Expanded VAT reporting requirements
From 1 July 2026, VAT returns will include more detailed mandatory data. The breakdown of deducted VAT by tax rate, which was previously optional, will become compulsory. This will increase the level of detail required in VAT reporting and may require accounting system adjustments.
Special Tax on Energy Suppliers (Robin Hood Tax)
Reduction of the tax rate
The special income tax on energy suppliers is 41% in 2025, but from 2026 the rate will be reduced to 31%.
New investment tax allowance
From 2026, energy suppliers will be able to reduce their tax liability through a new investment tax allowance linked to energy-related development projects. The allowance can be used in the year the investment is put into operation and in the following five tax years.
Retail Tax
The retail tax brackets will change significantly, benefiting smaller and mid-sized retailers in particular.
Retailers will be exempt from the tax up to an annual tax base of HUF 1 billion (previously HUF 500 million). The upper limits of the lower tax brackets will also increase, meaning that higher tax rates will apply only to much larger turnover levels. These changes already apply to the 2025 tax year.
Accounting and Reporting
Public Country-by-Country Reporting (Public CBCR)
Companies whose financial year matches the calendar year must prepare their first public CBCR report for the financial year starting on 1 January 2025. The filing deadline will be the same as for the annual financial statements, meaning 31 May 2026. Certain exemptions may apply depending on group structure and size.
Sustainability reporting
The obligation to prepare a sustainability report has been postponed by two years. The first mandatory sustainability report will be required for the financial year starting in 2027, giving companies more time to prepare their internal processes and data collection systems.
This article reflects general, simplified, non-exhaustive information on legislative changes and it does not substitute tax advisory. We recommend contacting us to assess on an individual basis whether your business is affected by the above legislative changes and to provide you with guidance on declaration and payment deadlines of the new taxes.
