Tax Newsletters 2026
You can read here the latest tax newsletters of the Hungarian office of Forvis Mazars published in 2026. We would like to inform our clients and partners about actual tax news and changes.
Attention: Important deadline! Corporate income tax group election will be open between 1 and 20 November
Qualifying company groups may apply to the Hungarian Tax Authority (NAV) for corporate income tax group status for the 2027 business year during the application period running from 1 to 20 November 2026. Applications to join an existing corporate income tax group may also be submitted during this application period. Companies that miss the above deadline will have to wait a whole business year for another opportunity.
Wealth tax: the HUF 1 billion threshold may be closer than many think
In line with the Government’s earlier decision, the draft Act on Wealth Tax (“draft legislation”) was released for public consultation on 6 October 2026. As per the draft legislation, the Act is scheduled to enter into force on 15 December 2026. If adopted in its current form, affected taxpayers would be required to fulfil their first wealth tax obligations by 31 August 2027, based on their wealth as of 31 December 2026.
Ministry of Finance Guidance on the New Transfer Pricing Documentation Decree
We are living in times of significant changes in the Hungarian transfer pricing regulatory environment. In December 2025, the new transfer pricing documentation decree (Decree No. 45/2025 of the Ministry for National Economy) was published, fundamentally transforming the rules of documenting and disclosing transactions between associated enterprises.
PPWR: Application of the new rules has begun
As of 12 August 2026, the European Union's new Packaging and Packaging Waste Regulation (PPWR) has become applicable. The good news is that businesses are not required to comply with all new requirements overnight. The European Commission envisages a gradual implementation and has indicated that, during the initial period, market surveillance authorities will focus primarily on facilitating compliance rather than strict enforcement.
Nevertheless, companies should not postpone their preparations. It is also important to emphasize that existing Hungarian obligations, particularly the extended producer responsibility (EPR) scheme and the mandatory deposit return system (DRS), remain in force even after the PPWR has entered into application.
Nevertheless, companies should not postpone their preparations. It is also important to emphasize that existing Hungarian obligations, particularly the extended producer responsibility (EPR) scheme and the mandatory deposit return system (DRS), remain in force even after the PPWR has entered into application.
A turn regarding the M sheet: the new completion rules do not have to be applied after all
In our newsletter published a few weeks ago, we presented in detail the stricter completion rules for the domestic recapitulative statement - commonly known as the M sheet - entering into force as of 1 July 2026. Since then, however, a significant turn has taken place: the legislator has initiated the withdrawal of these amendments, therefore the previous rules will evidently remain applicable.
The most important changes in the summer tax package
Hungary must implement several tax-related commitments related to the Recovery and Resilience Facility (RRF) by 31 August 2026: the personal income tax exemption for trusts will be abolished; the number of corporate income tax incentives will be reduced in order to increase tax revenues; the competitive conditions for the retail tax will be harmonised; and the number of tax types will be reduced. In order to fulfil these commitments, Bill No. T/387 (the “Proposal”) has been submitted. We summarize its most important tax provisions below.
Changes to and Extension of the Crude Oil Industry Windfall Tax
Act XXXII of 2026, adopted on 14 July 2026 and promulgated in issue no. 91 of the Hungarian Gazette (Magyar Közlöny) on 18 July 2026, amends the rules of the special tax payable by crude oil product manufacturers: it converts the tax built on the price differential between Brent and Russian crude oil into a tiered rate structure and extends it to the tax year beginning in 2027. The amendment to Act LIV of 2025 on certain tax obligations and the amendment of certain tax acts (hereinafter: the “Windfall Tax Act”) also makes part of the previously exempt price-differential range taxable. The new rules must first be applied to the monthly tax liability for August 2026.
New M sheet rules to enter into force as of 1 July 2026
1 July 2026 is a date that all Hungarian VAT taxpayers should mark in their calendars. On this date, the amendment to the “Receipt of invoices” section of Annex 10 to Act CXXVII of 2007 on Value Added Tax (hereinafter: “VAT Act”) will enter into force. The new rules will substantially reshape the completion of the domestic recapitulative statement, commonly referred to as the M Sheet, while the Hungarian Tax Authority’s long-standing objective remains that, from 1 January 2027, VAT returns should be submitted exclusively via the eVAT platform, either through the web interface or via an M2M connection.
Elevation of Emergency Decrees to Statutory Level, Wealth Taxation
Act XIV of 2026 on elevating to statutory level certain emergency decrees adopted in light of the armed conflict in the territory of Ukraine was promulgated in Issue 44 of the Hungarian Gazette on 9 May 2026 (effective as of 14 May 2026). Under the Act, a number of tax-related provisions previously introduced by government decrees during the state of emergency have been incorporated into statutory law. These include, inter alia, the personal income tax and social contribution tax exemption related to representation expenses, the reduced tourism contribution applicable to restaurants and confectioneries, the amended special tax rules applicable to credit institutions and energy suppliers, as well as the maintenance of the 0% rate of advertisement tax.
In addition, based on a Government decision, the substantive re-regulation of wealth taxation and the tax regime applicable to fiduciary asset management structures is expected to begin in the near future.
In addition, based on a Government decision, the substantive re-regulation of wealth taxation and the tax regime applicable to fiduciary asset management structures is expected to begin in the near future.
Advertising tax: the 0% rate remains – or does it?
Under the schedule adopted last year, the advertising tax act would have been re‑activated as of 1 July 2026 with a tax rate of 7.5% and 5%, respectively. However, by Government Decree No. 87/2026 (IV. 23.), adopted under the emergency regulatory regime, the outgoing government also maintains the 0% advertising tax rate after 1 July 2026. The Decree preserves the current status quo in respect of both the publisher’s (primary) and the advertiser’s (secondary) tax obligations, meaning that, as expected, no advertising tax will need to be paid going forward.
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