New tax package adopted in Hungary

Melinda Koncz • 2026. July 30.

The Hungarian Parliament has adopted the 2026 Summer Tax Package, introducing changes to several areas of the Hungarian tax system. While media reports have mainly focused on the taxes that will be abolished, the new legislation also includes a number of important changes for businesses.

These include new rules for trust asset management structures, changes to certain corporate income tax incentives, amendments to the retail tax regime, and several administrative changes.

Below, we summarize the key changes that businesses should already be preparing for.

Changes to the VAT return – Detailed purchase list (M sheets)

During the first half of the year, there was considerable uncertainty about the planned changes to the detailed purchase list of the Hungarian VAT return. The original rules would have significantly expanded the reporting requirements for purchase invoices from 1 July 2026. However, the introduction of these changes has been postponed.

As a result, businesses can continue using the current version of detailed purchase lists throughout 2026. For now, taxpayers are not required to report the actual amount of VAT deducted by VAT rate.

This is good news for businesses, as there is no need to modify accounting systems or reporting processes, and the existing form remains valid.

Stricter rules for fiduciary trust structures

One of the most important parts of the summer tax package is the amendment of the tax rules for fiduciary trust structures (Bizalmi Vagyonkezelés – BVK) and private foundations.

The aim of the new rules is to ensure that these structures are mainly used for long-term wealth planning and succession planning, while reducing opportunities for tax planning that were available under the previous rules.

The changes mainly affect the taxation of distributions from managed assets and also introduce transitional rules for existing trust structures.

Businesses and individuals with existing fiduciary trust management arrangements should review whether the new rules affect future distributions or their current tax structure.

Contact our tax expert

Corporate Income Tax: Several tax incentives are being phased out

The legislator has decided to gradually abolish a number of long-standing corporate income tax incentives.

Tax incentive for listed historic buildings to be abolished

The corporate income tax allowance for the renovation and maintenance of listed historic buildings will be abolished.

Under the transitional rules, the incentive can still be claimed for the 2026 tax year. After that, any unused tax benefit will be lost.

Companies that planned to use this incentive should review their remaining tax benefits before filing their 2026 corporate income tax return.

Growth Tax Credit (NAHI) to be discontinued

From 1 January 2027, taxpayers will no longer be able to choose the Growth Tax Credit (NAHI). Existing payment schedules will continue under the current rules, but investment-related tax reductions will only apply to instalments due before 1 January 2027.

Although this incentive affects only a limited number of businesses, companies using it should review how the transitional rules affect their future tax liabilities.

Changes to Public trust foundation (KEKVA) tax incentives

The tax package also gradually phases out the corporate income tax incentives available in connection with public trust foundations.

An exception remains for the 300% corporate income tax base allowance relating to donations made to higher education institutions, which will continue to be available on a transitional basis. Nevertheless, this incentive scheme will also be phased out in the longer term.

Simplified retail tax rules

The rules governing the Hungarian retail tax will also be simplified.

The mandatory aggregation of the tax base of related parties will be abolished. As a result, affected taxpayers will generally determine their retail tax liability based solely on their own net sales revenue. For certain corporate groups, this may reduce administrative burdens and, in some cases, result in a lower tax liability. The new rule already applies to tax years starting in 2026.

Simplification of the tax system

The summer tax package also abolishes several taxes that affect only a limited number of taxpayers. These include the immigration tax, the municipal tax, the dog ownership levy and the carbon allowance tax.

In the case of the carbon allowance tax, taxpayers may reclaim tax already paid if they meet the legal conditions.

In addition, the air pollution charge will increase from October 2026, mainly affecting manufacturing and industrial companies.

What should businesses do now?

Although several of the amendments will only enter into force in 2027, businesses should not wait until the last minute to prepare.

Companies should already consider:

reviewing their fiduciary trust structures;
assessing any remaining corporate income tax incentives available;
determining whether the discontinuation of the Growth Tax Credit affects their business;
evaluating whether the new retail tax rules result in a more favorable tax position for their corporate group.

The tax package is another reminder that tax legislation is constantly changing. Regularly reviewing tax structures and available tax incentives can help businesses avoid unnecessary risks and identify new opportunities.

If you would like to assess how these legislative changes may affect your business, ABT’s tax experts are available to provide professional assistance.