Global Daily Tax News, Hungary Enacts Laws To Implement Business Tax Relief Measures, (Dec 15, 2025)

Hungary has enacted legislation for the implementation of the Government's tax reform package.

The legislation raises the VAT registration threshold to HUF20m (USD60,400) in 2026, to HUF22m in 2027, and to HUF24m in 2028.

Further, it reduces the tax burden on taxpayers subject to the KATA regime, by raising the ratio of income considered to be expenses when calculating taxable income under the simplified regime, from the standard percentage of 40 percent, to 45 percent in 2026, and to 50 percent in 2027.

Other measures include that:

• more businesses will be eligible to be taxed under the small business tax regime;

• new tax credits will be introduced for businesses' environmentally friendly investments;

• energy companies will receive tax breaks for infrastructure upgrades;

• the retail tax threshold will be raised;

• corporate tax will be required in advance monthly payments only if liability in the previous year exceeded HUF20m, up from HUF5m; and

• more micro enterprises will benefit from simplified reporting requirements, with an increase to the eligibility threshold from HUF150m to HUF180m.