Key tax provisions you need to know

On 9 May 2026, the newly elected Hungarian Parliament adopted Act XIV of 2026, which elevates several government decrees introduced during the state of danger declared due to the armed conflict in Ukraine to statutory level. The legislation specifically affects the economic and tax environment, as several measures previously applied on a temporary basis will remain in force and receive statutory regulation. Below, we highlight the most important tax-related provisions of the Act, without claiming completeness.

The 0% advertising tax rate will remain in force indefinitely

The Act stipulates that the rate of advertising tax will continue to be 0% for an indefinite period. By doing so, the legislator incorporates the emergency practice into the ordinary legal framework, meaning that businesses engaged in advertising activities will continue not to have to calculate with any in-year tax burden changes.

The legislation also elevates the rules regarding the surtax on energy suppliers to statutory level, while the provisions applicable to credit institutions and financial enterprises are likewise incorporated into the Act without substantive changes. These sectoral tax burdens will therefore not cease upon the termination of the state of danger but will remain in force as part of the ordinary legal framework.

The rules on the banking surtax and the government bond portfolio-related tax allowance remain unchanged

In this context, it is established that for the tax year beginning in 2026, the surtax payable by credit institutions and financial enterprises will remain two-tiered: a 10% tax rate applies to the part of the tax base not exceeding HUF 20 billion, while a 30% rate applies to the amount exceeding this threshold.

The legislator also confirms at statutory level the tax reduction opportunity linked to the increase in government bond holdings. The amount of the reduction may continue to equal 10% of the nominal increase, but no more than 30% of the annual surtax amount calculated before the reduction. The amendment clarifies that the nominal value of government bonds must be taken into account when calculating the daily average holding, which in practice represents the precise incorporation of the previous emergency decree regulation without substantive changes.

The surtax on energy suppliers and the tax treatment of transformations are now governed by statutory rules

The obligation to pay the surtax on energy suppliers has also been introduced at statutory level. Following the rules of the emergency government decrees, the provisions require energy suppliers as defined by the district heating services legislation to pay a 0.5% surtax for the tax year beginning in 2026 on the revenue from activities subject to corporate income tax as reported in the 2024 financial statements, capped at 50% of the 2024 corporate income tax base.

The regulation also sets out detailed rules for determining the tax base of companies affected by transformations. If an energy supplier was involved in a transformation, merger or demerger between 2024 and 2026, the surtax base must not be determined solely on the basis of its own 2024 revenue, but the relevant data of predecessor and successor entities must also be taken into account. Consistent with the previous emergency rules, this provision ensures that the tax base reflects the company’s actual economic performance regardless of organisational changes.

Filing deadlines and the long-term continuation of emergency rules continue to shape the tax environment

The Act also clearly defines the filing and payment deadlines. Energy suppliers must determine the surtax through self-assessment and are required to file and pay it on a separate form by the last day of the third month of the tax year beginning in 2026. If the taxpayer ceases to exist or otherwise falls outside the scope of the surtax before the deadline, the obligation must be fulfilled within 30 days following the termination or the exit from the scope of the surtax, provided that the original deadline has not yet expired. This regulation transfers the emergency decree practice into statutory law, ensuring the continuity and closure of obligations.

The newly adopted Act XIV of 2026 entered into force upon the termination of the state of danger on 14 May 2026 and does not merely reorganise surtaxes: several emergency measures affecting the economic environment will also remain in force at statutory level, which may continue to indirectly affect business operations. The detailed rules also include numerous minor amendments and specific provisions that collectively shape the tax environment for 2026.

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This newsletter has been prepared exclusively for general informational purposes based on information available on the date of publication and does not constitute personalised tax advice in any respect, nor does it replace such advice.