The autumn tax package submitted to Parliament on 29 October 2024 underwent a number of amendments before its promulgation on 28 November 2024. In the following, we will provide an overview of the most important changes, in a breakdown according to tax categories.

Personal income tax 

Date of income in case of services used

For services provided free of charge by a payer, the rule before 1 January 2024 will be reintroduced as regards the determination of the date of income. This means that the date on which the income is earned is the date on which the provider of the service becomes or would become liable to pay tax with attention to the date of performance according to the provisions of the VAT Act. Under this rule, the liability may be established weather or not an accounting document is issued for the supply.

For purchased services, the rule introduced from 1 January 2024 remains in force, under which the date of the income is the date on which the accounting document for the service is available.

Increase of the amount of family tax allowance

The amendment provides for an increase of the amount of the family tax allowance depending on the number of children, including the allowance for children who are permanently ill or severely disabled. The increase will be implemented in two phases:  the amount of the allowance will be increased to 1.5 times the current rate from 1 July 2025, and to twice the current rate from 1 January 2026.

The rate of the family tax allowance (as an item reducing the consolidated tax base) per beneficiary dependant and per month of entitlement will be as follows:

All figures in HUF per child

Flat-rate lump-sum taxation for persons providing private accommodation services

The range of properties eligible for the flat-rate option (private accommodation) has been extended to include not only holiday homes and flats, but also farm buildings, or a delimited part thereof, suitable for human habitation.

Furthermore, a distinction has been made in the flat-rate tax rate depending on whether the number of nights spent on the settlement where the accommodation is situated exceeds 2 million nights. If the private accommodation is located on such a settlement, the individual will have to pay HUF 150,000 of personal income tax per room per year instead of HUF 38,400. The list of these popular tourist destinations where the number of nights spent exceeds 2 million will be published by the National Tax and Customs Administration by 15 January 2025.

Use of non-wage benefits on the SZÉP Card for housing renovations

Up to 50 percent of the non-wage benefits provided by employer, as shown in the account balance of the Széchenyi Recreation Card (SZÉP Card) on 1 January 2025 and transferred to the account in 2025, may be used for housing renovation expenses in 2025. The products and services eligible for housing renovation are defined in the Government Decree on the rules for the issue and use of the SZÉP Card.

The new “Active Hungarians” sub-account of SZÉP Card

If the payer is the employer, it will be considered as a non-wage benefit if, during the tax year,

the employee receives an annual allowance not exceeding HUF 120,000, credited to the “Active Hungarians” sub-account associated with a limited-purpose payment account of Széchenyi Recreation Card benefits. The allowance is intended to promote an active lifestyle. Any amount exceeding the above limit is classified as “other non-wage benefit”.

Housing allowance for workers under 35 years of age

In addition, from 2025, a benefit not exceeding HUF 1,800,000 per year granted by an employer to an employee under 35 years of age to help pay rent or to repay a housing-purpose loan is also considered a non-wage benefit. Any amount exceeding the above limit is also classified as “other non-wage benefit” provided.

When applying for the housing allowance, the individual must present to the employer the lease or loan contract on which the housing allowance is based. If the amount of the housing allowance claimed by the individual in the year in question exceeds the amount of the rent or loan repayments certified as having been paid by the individual and for which the individual is liable, the individual must declare 50% of the excess amount as a differential penalty in his/her tax return for the tax year and pay it as personal income tax.

Changes in tax-exempt benefits 

1. Tax-free transfer of deposit fees and packaging subject to the deposit refund system:

Payers may transfer products subject to the deposit refund system (i.e. packaging of specified beverage products) to individuals tax-free. The deposit fees paid by the distributor and provided by payers are also tax-free.

2. Use of sports facilities and equipment as a tax-free benefit:

Employees and other private individuals will now be able to use sports facilities and sports equipment provided by employers or other payers for the purposes of sports free of charge or at a reduced price as a tax-free benefit.

3. Tax-free provision of admission tickets to zoos:

The range of admission tickets and passes for sporting events and cultural services that can be granted tax-free has been extended to include zoo admission tickets and passes. In accordance with the previous rules, tax-free allowances of up to the minimum wage may be granted in any one year. As under the previous rules, the voucher does not entitle the holder to a tax-free allowance.

4. Gifts given at a sporting or national events:

Representation and business gifts given in connection with the organisation of a major sporting event or national event under the Government Decree on the designation and definition of certain tasks of the National Event Organisation Agency Nonprofit Private Limited Company will henceforth be tax-free benefits.

5. Use of voluntary pension savings for housing purposes

An additional service provided by a voluntary mutual pension fund under Section 74 of the Act on Voluntary Mutual Insurance Funds. This may take the form of support for the repayment or prepayment of a mortgage loan or an employer’s loan for housing; support for the down payment on a housing-purpose loan or credit agreement; support for the modernisation, renovation or extension of a dwelling; support for the purchase of a dwelling or building plot for the construction of a dwelling; and support for the construction of a dwelling.

6. Sale of properties designated as protected monuments

Income from the sale of a real property classified as a protected monument under the Hungarian Architecture Act within 36 months of its acquisition will be exempt from tax, provided that the individual has renovated the property in accordance with the monument protection regulations, has carried out monument restoration after the acquisition, and has a certificate to this effect issued by the heritage protection authority, and the sale is not made in the context of business activities in the framework of an economic entity of as a sole trader.

Corporate income tax 

Differences arising from different legal classifications of the same situation by different states

If a taxpayer recognises a cost or expense or applies a tax base deduction that is recognised as a cost or expense (tax base deduction) in the tax base of both the taxpayer and a foreign person due to a difference in domestic and foreign law, the loss due to the disallowed expense could not be used in the future for twice recognized income, so it was permanently lost for taxpayers. The amendment intends to remedy this shortcoming of the legislation and will allow taxpayers to take previously disallowed expenses into account.

Extension of depreciation under the CIT Act

Land and plots used for the storage of hazardous waste may be subject to a depreciation equal to the accounting depreciation on the basis of Corporate Income Tax Act. This option is first available for tax year 2024.

Free allowances in connection with popular team sports

From 1 January 2025, free allowances paid to professional sports organisations that are in the field of popular team sports and the economic or business turnover of which for the tax year derives at least 75 per cent from sports activities will be recognised as eligible expenses. An additional condition is that no more than 1 per cent of the beneficiary’s turnover under the CIT Act for the tax year is recognised as an expense and that the beneficiary must have a written certificate with the appropriate data content issued by a professional sports organisation in the field of popular team sports.

Extension of the scope of the benefits linked to popular team sports

From 29 November 2024, taxpayers can also provide support (donations) to the national sports federation for popular team sports for the costs of operating a sports property. The total value of certificates of support may not exceed 80 percent of the supported organisation’s approved costs of operating its sports-purpose property.

Global minimum tax

Reporting obligation

Under the previous rules, the only requirement for a notification to be filed within 12 calendar months of the start date of the tax year was that “the report must present the multinational group of companies or large domestic group of companies.” In addition, from 29 November 2024, the notification must also include the identification of the group members (including their tax number, EU VAT number), the state in which they are resident, as well as the classification of each company under the GloBE Act. The notification must also include information on the overall corporate structure of the group, including the shareholdings of each group member in other group members.

Fortunately for taxpayers, the Hungarian Tax and Customs Administration (NAV) introduced the 2024 GLOBE filing form, available in the Online Form Filling Application (ONYA) with the previous, more restricted information content on 5 December 2024. As it is an ONYA form, it can only be completed and submitted by a person who has a registered power of representation for the company with NAV.

New: obligation to pay tax advances

A domestic group member or a designated local entity acting on its behalf must assess, declare and pay a recognised domestic additional tax advance for the tax year. The deadline is the 20^th day of the eleventh month following the last day of the tax year to which the recognised domestic additional tax relates, i.e. when the tax year 2024 corresponds to the calendar year, the deadline is 20 November 2025.

Data content of the advance tax return:

1. the identification data of the domestic group member;
2. the recognised liability of the domestic group member for the domestic additional tax advance.

The amount of the recognised domestic additional tax expected to be payable for the tax year will be assessed as the tax advance. Late payment penalty, tax penalty and default penalty in respect of the advance payment may not be applied if the group member acted in good faith.

Value-added tax (VAT)

Assignment of VAT deduction right

In order to combat the grey economy (reducing tax evasion through the use of an indirect customs representative), the from 1 March 2025, there will be more restrictions on in what cases an indirect customs representative is entitled to exercise the right of deduction for the importation of goods instead of the principal.

Postponement of the introduction of e-receipt system

The introduction of the e-receipt system is expected from 1 July 2025 instead of the originally planned 1 January 2025, giving the taxpayers concerned more time to prepare.

Extension of the scope of domestic reverse charge cases

As from 1 January 2025, supplies of natural gas between taxable dealers will be subject to reverse charge, making the taxable dealer who purchases the natural gas the entity liable to pay the tax in respect of these transactions. The measure aims to reduce VAT fraud.

For supplies of natural gas subject to reverse charge, the rule imposes an obligation to provide information on both the taxable person supplying and the taxable person acquiring the goods.

The amendment will apply for the first time to transactions for which the date of supply falls on or after 1 January 2025.

Changes in the rules applicable to VAT-exempt status

From 2025, taxable persons who are exempt from VAT in their home Member State will be able to opt for exemption in other Member States. A domestic taxable person that has opted for exemption from VAT cannot exercise a right of deduction in respect of domestic acquisitions used for transactions carried out in another EU Member State in which it has not opted for a VAT exemption.

In addition, the right of an exempt taxable person to opt for the one-stop shop for imports is reduced.

The taxable amount of the domestic supply of goods and services must include the tax-free consideration of the domestic supply of goods and services. Further, given that the supply of goods and services is subject to the exemption, the taxable person may not deduct the tax on the goods and services acquired for the purpose of the supply.

Extension of the 5% VAT rate for new residential properties

The Autumn Tax Package extends by 2 additional years the reduced rate of 5% VAT on the sale of certain new residential properties. This means that the reduced VAT rate on the sale of new residential properties will continue to apply after 31 December 2024 until 31 December 2026. In addition, the amendment provides for a transitional rule to deal with protracted construction works, so that the 5% rate may be applied until 31 December 2030 to all construction works for which the building permit has become final on 31 December 2026 at the latest or for which the construction has been notified under the simple notification rules by 30 September 2024 or has been acknowledged by 31 December 2026.

Preparation of a summary report without rounding (in HUF)

Under the current rules, the summary report on the invoices received must indicate the tax base and the tax rounded to thousands of HUF per voucher, but the legislator argued that this makes it difficult to compare the data with the online invoice data service and with other lines in the returns. The aim of the amendment is to ensure that the invoice data in this report are expressed in HUF. The return will continue to be in thousands of forints, but the breakdown of the data reported will have to be in forints from 1 January 2025.

Environmental product charge

From 2025, the environmental product charge (EPC) will no longer apply to products covered by both the product charge scheme and the extended producer responsibility (EPR) scheme. Accordingly, the administrative obligation (including the obligation to declare and register) will be abolished for packaging materials/products, electrical and electronic equipment, tyres, batteries, promotional and office paper.

Excise tax

Changes in tax rates or valorisation (adjustment) for inflation

From 2025, the excise tax rates on energy products and tobacco products are increasing as follows:

• on natural gas: for supply, sale or use as fuel for road vehicles 36 HUF/kWh (increased from 32 HUF/kWh), otherwise HUF 0.3879/kWh (increased from 0.3492 HUF/kWh);
• on electricity: 398 HUF/MWh (increased from 358.50 HUF/MWh);
• on coal: HUF 3,230 HUF/metric ton (increased from 2,905 HUF/metric ton);
• on heating oil: in the case of supply, sale or use for heating, 5,970 HUF/metric ton (instead of 5,375 HUF/metric ton), and HUF 116,000 HUF/metric ton in the case of supply, sale or use as fuel (for vehicles);
• on LPG: HUF 95,800 HUF/metric ton for supply, sale or use as motor fuel for road vehicles, HUF 16,320 HUF/metric ton for supply, sale or use for other motor purposes (increased from 14,685 HUF/metric ton), and 0 HUF/metric ton for supply, sale or use for heating purposes;
• on cigarettes, 32,300 HUF/thousand pieces (increased from 29,500 HUF) and 24% of the retail selling price, but not less than 45,200 HUF/per thousand (increased from 41 800 HUF);
• on cigars and cigarillos, 14% of the retail selling price, but not less than 5,230 HUF/thousand pieces (increased from 4,840 HUF);
• on fine-cut smoking tobacco and other smoking tobacco: 28,060 HUF/kilogram (increased from 25,960 HUF);
• on liquid filler: 36 HUF/ml (increased from of 33 HUF);
• on new tobacco product categories containing tobacco or consumed together with tobacco:
  • in case of single-use products, 38 HUF/piece (increased from 35 HUF);
  • in case of liquids 76 HUF/ml (increased from 70 HUF);
• for smokeless tobacco products, 28,060 HUF/kg (increased from 25,960 HUF);
• for nicotine replacement products 28,060 HUF/kg (increased from 25,960 HUF);
• for heated products: 38 HUF/piece (increased from 35 HUF).

After 2025 (and, in some cases, after 2024), the excise tax rates for energy products, fuels, tobacco and alcohol products will be revalorised in line with inflation. The inflation-adjusted figures will be published by the Hungarian Tax and Customs Administration (NAV) on its website by 31 October of the year preceding the year in question.

Reclaiming the excise tax

With the new change, a rail transit operator will be entitled to a claim a refund of the excise tax also on electricity, in addition to diesel oil.

The tax rebate for commercial diesel gas oil will be increased to the EU minimum level, i.e. the highest level that can be granted, and will automatically remain at that level even after valorisation.

Motor vehicle registration tax

Increase the tax rate following the inflation

An entirely new provision, already mentioned in case of the excise tax, is added to the law governing the motor vehicle registration tax, whereby the tax rate will be valorised in line with the change in inflation from 2024 onwards. In determining inflation, the Hungarian Tax and Customs Administration will compare the change in the consumer price index of the Central Statistical Office (KSH) for July of the year preceding the subject year with the consumer price index in July of the year before that, and on the basis of this it will publish the new tax rate on its website by 31 October of the year preceding the subject year.

Abolition of allowances and exemptions for hybrid vehicles

As a result of the amendment, the reduced or zero rate for hybrid and plug-in hybrid vehicles and the zero rate for hybrid motorcycles will be phased out from 1 January 2025 and will remain only for pure electric or zero emission vehicles.

Motor vehicle tax 

Tax rate increase adjusted for inflation

Similarly to other tax rates, the rate of the motor vehicle (road tax) will be also valorised in line with inflation from 2024 onwards. The new rules are the same as described above for the registration tax, so that when determining inflation, the Hungarian Tax and Customs Administration will compare the change in the consumer price index published by KSH for July of the year preceding the subject year with the consumer price index in July of the year before that, and on the basis of this it will publish the new tax rate on its website by 31 October of the year preceding the subject year. All vehicles subject to the tax (cars, lorries, tractors, buses, etc.) will be affected.

The same rule, i.e. the tax rate will be revalorised by inflation, has been introduced for vehicles registered abroad.

Under a transitional provision, the tax rates had to be published by NAV in this first year by 15 December 2024 (instead of 31 October 2024), which NAV has already done for both domestic and foreign motor vehicles.

Company car tax

 Tax rate increase for the year 2025

The monthly rates of company car tax increasing as follows from 1 January 2025:

Tax rate increase adjusted for inflation

As described above, the company car tax rate will also change annually in line with inflation. The regulation itself is the same as for the motor vehicle tax, i.e the Hungarian Tax and Customs Administration will compare the change in the consumer price index published by KSH for July of the year preceding the subject year with the consumer price index in July of the year before that, and on the basis of this it will publish the new tax rate on its website by 31 October of the year preceding the subject year.

Additional temporary exemption for hybrid and plug-in hybrid vehicles

For vehicles in the environmental classes 5P and 5N, i.e. hybrid and plug-in hybrid vehicles, the exemption from the motor vehicle tax under the provisions of the law in force on 31 December 2024 and the exemption from the scope of the company car tax will be available until 31 December 2026, provided that the taxable person’s tax status or tax obligation arose on or before 1 January 2025.

Changes concerning property transfer tax

Adjustment of the rate of property transfer tax on the purchase of motor vehicles and trailers

As with many other taxes, after 2024, the rate of the property transfer tax due in case of the acquisition of a motor vehicle and trailer will be adjusted for inflation. The adjustment will take place in the same way as described above. Under the transitional provision, the new rates will also have to be published by the NAV for the first time by 15 December 2024 and by 31 October from 2025 onwards. The rates applicable from 2025 are available here.

Contributions to be paid by airlines

From 1 January 2025, the airline contribution will be phased out of the Hungarian tax system. The last date for taxpayers to report tax data will be December 2024, by the 5th day of the month following the month concerned, as previously. Consequently, the last payment of the tax is due for the month of December 2024, by the 20th day of the month following the subject month, in accordance with the rules previously in effect.

Advertising tax

The suspension of the obligation to pay advertising tax has been extended until 31 December 2025.

Retail sales tax

The scope of taxable persons is extended to include non-resident or resident platform operators who provide a marketplace for retail sellers. The taxable person for retail activities carried out through a platform is the platform operator, not the retailer.

For the purposes of the Retail Sales Tax Act, a platform is defined as any software (including websites and parts thereof) and application (including mobile applications) accessible to users that allows sellers to connect with other users for the purpose of directly or indirectly performing a relevant activity for users.

The annual taxable amount of the platform operator as a new taxable person is the revenue from the sales made through the platform by retailers selling through the platform. The platform operator therefore becomes a “quasi” vendor in respect of sales made through the platform. If the platform operator also carries out retail activities, its taxable amount is the sum of its taxable amounts determined with respect to the two activities.

The tax is determined on the basis of the combined amount of the receipts from retail sales abroad and domestically, but the tax determined on the basis of the revenue from abroad sales is reduced by the tax on the receipts received in respect of goods supplied abroad. In other words, no tax will continue to be payable on the proceeds of sales of goods transferred abroad.

The platform operator must comply with the notification obligation within 15 days of becoming a taxable person.

A taxable person who also sells through the platform, or any other person or entity that sells exclusively through the platform, must file a tax return even if not liable to pay tax.

If the platform operator fails to comply with the tax payment obligation and the tax debt cannot be recovered, the retailer is liable for the tax instead of the platform operator. In this case, the platform operator’s website will be rendered inaccessible by NAV.

Social contribution tax 

Social contribution tax on yields from a permanent investment contract

Starting from 1 January 2025, individuals established in Hungary will be required to pay social contribution tax on yields from long-term investment contracts governed by the Income Tax Act if the contract is concluded after 31 December 2024 and terminated before the three-year or five-year period ends. This payment is not subject to the tax ceiling. The rate of the social contribution tax is 13% before the end of the three-year period, 0% after five years, and 8% in other cases.

Reduction of the period for the application of the social contribution tax credit for labour market entrants

The emergency provisions in force from August 2024 will be transposed into law. Accordingly, the conditions for the social contribution tax credit to be claimed by the employer for a person entering the labour market are modified: the inactive period for which the credit is granted is increased from 6 to 9 months, the possibility of claiming the credit at 100% rate is reduced from 2 years to 1 year, and the rate for the subsequent 6 months is reduced to 50%.

Tax allowance for vocational education and dual training

Under the amendment, where an employer trains its own employees, the employer may claim the allowance for up to 12 months for the same employee, and it is subject to imposing an obligation on the employee to take an examination.

The rules of taxation

Application for a tax identification number by third-country nationals

The change in the legislation allows that in case of third-country national workers who do not have a tax identification number under the Act on the general rules for the entry and stay of third-country nationals, their employers may also request the Hungarian Tax and Customs Authority to issue one.

Final tax return of a group corporate taxpayer

The new rule for group corporate taxpayers is that they must file their final tax return within 90 days – instead of the previously applicable 30 days – from the date of termination.

Introduction of e-receipts

The amendment contains clarifications on the introduction of e-receipts for both the e-cash registers and customer applications.

Opening a payment account

Branch of foreign companies in Hungary will be added to the list of those obliged to open a payment account. As a transitional rule, branches already registered are required to open a domestic payment account until 31 January 2025.

The introduction of the data reconciliation procedure as a new tax authority procedure

In order to eliminate the risks identified, in addition to supporting procedures and audits, the tax authority may also conduct data reconciliation procedures. This procedure may be used by the tax authority to clarify any gaps or discrepancies in the data provided by the taxpayer.

The taxpayer is obliged to carry out the data reconciliation within 15 days of the date of service of the request, using the electronic interface provided for this purpose.

The new procedure is also accompanied by a new special default penalty of HUF 300,000 for taxpayers who fail to comply with the data reconciliation obligation.

Penalty for failure to comply with the procedure for clarifying the status of insured persons

If a taxpayer has not fulfilled the obligation to submit the ‘08 return for the employee or partner who is registered for that payer, the tax authority will first send a warning, and then may impose a default penalty of HUF 100,000, in addition to a further reminder letter.

Reduction of the grace period for cancellation of tax number in the event of failure to file returns

Instead of the current 180-day grace period, the tax authority will cancel the tax number of a taxpayer that fails to comply with the obligation to submit a summary statement on VAT, or to submit a monthly tax and contribution return or VAT return, 90 days after the warning.

Transposition into law of the increase in the amount of the default penalties

As of 1 January 2025, the increased default penalty items that were previously introduced by a government decree with attention to the emergency situation will be transposed into the Act on the rules of taxation. On the basis of the above, the upper limit of the general default penalty amounts will be increased, in line with the government decree in force from August 2024, from HUF 200,000 to HUF 400,000 for natural persons and from HUF 500,000 to HUF 1 million for non-natural persons. In addition, the maximum amount of the default penalty for the employment of undeclared workers and for infringements of the rules on the obligation to issue invoices, receipts and retain documents has been increased from HUF 1 million to HUF 2 million.

Late payment surcharge

From 1 January 2025, the late payment penalty will be applied without rounding. The tax authority will impose a late payment penalty if the annual amount of the penalty charged per month exceeds HUF 5,000. The tax authority will impose the late payment penalty for the months January to March 2025 in April 2025, and monthly thereafter.

Tax administration procedural rules

Hearings by way of electronic communications networks

By introducing a new legal instrument, the legislator would create the possibility for a person summoned for a personal hearing in tax administration proceedings to be heard by way of an electronic communications network. It must be ensured that the parties concerned can see and hear each other throughout the entire hearing. The minutes of the hearing need to be signed only by the representative of the tax authority, while on the taxpayer’s side, approval by oral declaration is sufficient. The minutes must then be served on the taxpayer without delay.

Examination of the transfer pricing documentation and data reporting during a compliance audit

Under the amendment, the tax authority is specifically entitled to examine, in the course of a compliance audit, the transfer pricing documentation and data reported. From 1 January 2025, instead of the current 30 days, the tax authority has 60 days to carry out a compliance audit of the transfer pricing documentation and transfer pricing data reported.

Expansion of the scope of decisions that can be appealed independently

The amendment expands the scope of first-instance decisions that can be appealed independently to include decisions on VAT refund claims by taxable persons established abroad.

New facts and circumstances in special VAT refund proceedings

The provision, often evoked in the context of appeals, concerning the introduction of new facts or evidence will not be applicable in special VAT refund proceedings. In other words, in such proceedings, taxpayers may rely on new facts or evidence in the appeal even if they were aware of the same before the first instance decision was taken – or, in the case of an audit, before the deadline for submitting observations had expired – but did not declare or submit them despite being requested to do so by the tax authority.

Enforcement rules

Additional grounds added as available for the suspension of enforcement proceedings

In accordance line with Section 52 of Act I of 2017 on the code of administrative court procedures, the amendment supplements the list of grounds for the suspension of enforcement proceedings.

Electronic communication with the employer in the event of an income garnishment

In the case of an electronic income garnishment (attachment of earnings), the provision obliges the employer to provide the tax authority with the information required by law using the form provided for this purpose.

Changes to the calculation of late payment penalty in enforcement proceedings

The provision unifies the rules for the calculation of the late payment penalty at the Hungarian Tax and Customs Administration by transposing the calculation method for tax debts to the calculation of public debts that are not tax debts. Thus, the rate of the late payment penalty for each calendar day of delay will be a 1/365^th part of the base rate of the central bank at the time of the delay plus 5 percentage points, just as it is for tax debts.

Changes related to the Accounting Act

Increase in indicators affecting the obligation to prepare simplified annual accounts and consolidated annual accounts

The thresholds determining the obligation to prepare simplified annual accounts and consolidated annual accounts will increase as follows:

Value limits applicable to opting to prepare simplified annual accounts:

1. a) the upper limit concerning the balance sheet total will be increased to HUF 2,000 million from HUF 1,200 million,
2. the upper limit for the annual net turnover is increased from HUF 2,400 million to HUF 4,000 million. The criterion on the average number of employees in the business year (50) remains unchanged.

The limits for the obligation to prepare consolidated accounts are increased as follows:

1. the balance sheet total is changed from HUF 6,000 million to HUF 10,000 million,
2. the annual net turnover is changed from HUF 12,000 million to HUF 20,000 million. The criterion on the average number of employees in the business year (250) remains unchanged.

Increase in the limit for exemption from the audit requirement

The limit for exemption from the audit requirement is increased from HUF 300 million in annual net revenue to HUF 600 million. The criterion on the average number of employees in the business year (50) remains unchanged.

Selection of the auditor of the sustainability report

The amendment introduces a one-year transitional period by allowing for the financial year 2024 that the auditor or audit firm, which is a member of the Chamber, be elected by the executive body instead of the supreme body (such as the general meeting) in connection with the sustainability report or consolidated sustainability report, at the latest by the balance sheet date.

Severance tax (mining tax)

Introduction of banded severance tax rates

Banded severance tax rates will be introduced based on world market prices. In addition, lower rates will be set for certain extraction technologies, partly because of the higher cost requirements of the technology concerned and partly in order to maintain domestic extraction levels and thus reduce the import ratio.

Liquidation and compulsory dissolution procedures

Increase in the amount of debt required to initiate liquidation proceedings

The amendment raises the amount of the claim to be notified or the amount of the company’s assets needed to initiate liquidation proceedings, from HUF 400,000 to HUF 1,000,000. Below this limit, the court will remove the company from the register (by way of compulsory dissolution) if the conditions set out in the law are met, while the court will initiate liquidation proceedings for claims or assets reported in excess of HUF 1,000,000.

***

If you have any questions about the planned tax changes, the tax experts of Grant Thornton are ready to assist you and your company.

This summary is based on the information available at the date of its publication and is written for general information purposes only; therefore, it does not constitute or replace personalised tax advice in any respect.