What to pay attention to before the end of the year?
Once again this year, Forvis Mazars has prepared its summary of the end-of-the-year tasks. Our current newsletter lists the taxation deadlines and decisions to be made that the financial management of companies needs to keep in mind – even when the holidays are just around the corner.
In several taxation-related issues, the 20th and the 31st of December 2025 are particularly important deadlines (however, since the 20th falls on a Saturday, it means the 22nd December). In addition to the usual filing dates, we must also pay attention to several special deadlines this month. Furthermore, this is also the time to make some decisions that can either not be made later or only with more administrative burdens.
I. End-of-year taxation deadlines
With the end of the year fast approaching, the following tax-related deadlines should be kept in mind (not including sector-specific ones):
Task | Deadline (for those whose business year coincides with the calendar year) | Tax type | In what case is it applicable? | Form no. |
|---|---|---|---|---|
Payment of tax and contribution advance | 20 December (22nd December) 2025 | Corporate income tax | Payment deadline for taxpayers required to pay monthly advances | - |
20 January 2026 | Corporate income tax | Payment deadline for taxpayers required to pay quarterly advances | - | |
Innovation contribution | Payment of Q4 advance | - | ||
| Donations offered from corporate income tax | 31 December 2025 | Corporate income tax | Taxpayers required to pay quarterly advances can make contributions from their 2025/Q4 tax, due by 20 January 2026, up to 80% of the amount of the tax. | 25RENDNY |
Taxpayers required to pay monthly advances can make contributions from their January 2026 tax, due by 20 January 2026, up to 80% of the amount of the tax. | 26RENDNY | |||
| Data reporting obligation | 28 February (2 March) 2026
| Global minimum tax | In the case of being subject to global minimum tax | GLOBEA + GLOBEM |
| Declarations | 31 December 2025 (last day of financial year) | Transfer pricing | Deadline for submitting country-by-country reporting notification | 25T201T |
| Review of procurement invoices | 20 January 2026 | VAT | The eligibility for tax deduction arising in 2024 can only be included in the last VAT returns for 2025 without a self-revision procedure. | 2565 |
At the end of the year, there is a possibility for declaring certain optional decisions, as well. The following table lists the most important decisions that can be made, as well as the related deadlines:
Task | Deadline | Tax type | In what case is it applicable? | Form no. | |
|---|---|---|---|---|---|
Decisions | Selecting cash accounting scheme | 31 December 2025 | VAT | The decision is bound to certain conditions, and eligible taxpayers should consider individually whether this decision is favourable for them. | 25T201T |
The decision of tax liability related to the sale or lease of real properties | 31 December 2025 | VAT | If the tax subject wishes to make activities of this type subject to tax liability. However, it is important to note that the tax subjects who select this option cannot change their decision for five years. | 25T201T | |
Changing between taxation schemes | 31 December 2025 | KIVA | It is expedient to notify a change between the taxation schemes with the end of year (although it is not obligatory). | 25T201T | |
Taking into inventory | 31 January 2026 | Environmental Product charge |
In the case of the decision of tax payment at the time of taking into inventory for product charge assessment from 2026. | 26TKORNY | |
Payment of flat rate product charge | For taxpayers deciding to pay a flat rate for the subject year, from the time when the conditions are satisfied. | ||||
Selecting taxation as a corporate income tax group | For those whose business year coincides with the calendar year | Corporate income tax | For companies whose business year coincides with the calendar year, the deadline for submitting their application expired on 20 November 2025. No excuses submitted for missing the above deadline are acceptable. | ’T118 | |
| For those whose business year does not coincide with the calendar year | Companies whose business year does not coincide with the calendar year can still make a selection. The application must be submitted between the 1st and 20th day of the month preceding the last day of their tax year. | ||||
II. Country-by-country reporting notification
Taxpayers whose business year coincides with the calendar year have a notification obligation for the 2025 business year in connection with the Country-by-Country Reporting (“CbCR”) until 31 December 2025, as this notification has to be repeated annually. This notification obligation applies to such Hungarian companies that are members of an international group with a consolidated annual revenue of EUR 750 million or more, regardless of the scale of their Hungarian operations. The reporting obligation can be performed with the use of form no. 25T201T. On the above form, the taxpayer declares that:
- it submits a Country-by-Country Report itself, or
- it is not required to submit a Country-by-Country Report itself and identifies which other group member will perform this obligation.
III. The checking of master data in NAV’s records
The end of the year also provides an excellent opportunity for reviewing whether the master data kept in the records of the Tax Authority (NAV) is correct. In the case of related parties, several reporting obligations may arise. If, for example, we conclude a contract with our related party, the data of the other party must be reported to the Tax Authority within 15 days of the date of the first contract, and the termination of the related party status must also be reported within 15 days of such termination (by the means of form 25T201).
After reviewing the related party status, it is also worth examining whether the transfer pricing documentation has been prepared for all transactions that are subject to the documentation obligation. This is important because in the case of failing to prepare the transfer pricing documentation, the default penalty that may be imposed is HUF 5 million, in the case of a repeated violation HUF 10 million per documentation and per year.
We also recommend checking the status of the taxpayer, which is worth monitoring not only at the end of the year, but also during the whole year. Based on the classification system of NAV, if certain conditions are met, taxpayers are classified to reliable, general or risky taxpayers on a quarterly basis. While reliable taxpayers can get some benefits, risky taxpayers are subject to stricter judgment. For example, reliable taxpayer status can have a significant advantage in terms of the amount of fines during a potential tax audit, but the deadline for a tax audit and for the VAT reclaim is also shortened.
IV. Database of public debt free taxpayers (KOMA)
The possibility that individuals and companies can spare extra administration by registering for the KOMA database is still unknown to many. The registration replaces the zero debt certificate (this is required for example in public procurement procedures or in the case of ‘CSOK’ administration), but it also exempts taxpayers from providing EKAER risk insurance.
V. Exercising the rights of VAT deduction arising in 2024
Based on Section 153/A of the VAT Act, before filing the VAT returns for December 2025, Q4 of 2025 or the annual returns, it is important to examine our VAT analytical records and our procurement invoices. Under the applicable rule, the total amount of VAT due for a given tax period can only be reduced by subtracting the deductible VAT for the same tax period, or in the period of one calendar year prior to the calendar year including the given tax period.
The right of deduction will remain afterwards, of course, however, in order to be able to reduce the tax due by the amount of VAT from 2024, it will be necessary to self-revise the VAT period in which the invoice’s performance date falls. Therefore, it is worth including the procurement invoices with a date of 2024 and not yet deducted in the returns for Q4 of 2025 or December 2025 (or for the year 2025 if filing annual returns).
VI. Data reporting obligation for global minimum tax
Those groups are subject to global minimum tax whose ultimate parent company’s consolidated annual revenue exceeds €750 million in at least two of the four fiscal years immediately preceding the tax year. The members of these groups being resident in Hungary have an annual reporting obligation on their taxpayer status to the Tax Authority (NAV) using the official forms (GLOBEA and GLOBEM). The deadline for this is the last day of the second month following the tax year, meaning that calendar-year taxpayers must submit their declaration for 2025 by 28th of February 2026 (or, since that falls on a Saturday, by 2nd of March). If the taxpayer fails to complete or delays this reporting obligation, the tax authority may impose a penalty of HUF 5 million.
We hope that this review will be useful in the end-of-year preparations. If you have questions in connection with any of the issues, our advisers will be pleased to assist you.
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