The new transfer pricing decree has been published (45/2025. (XII. 23.) NGM Decree)

As reported in our previous article, the Ministry for National Economy released the draft of the new transfer pricing decree for public consultation on 2 December 2025, inviting comments until 10 December 2025. Previously we have prepared a newsletter analysing the expected changes in details (available here). In summary, based on the draft legislation the key proposed amendments were as follows:

• Changes to documentation thresholds: In the case of the local files, the threshold per combined transactions – calculated at arm’s length value, excluding VAT – increased from HUF 100 million to HUF 150 million. For master files, a new threshold was introduced: a master file is required only if the total net value of a taxpayer’s related-party transactions calculated at arm’s length terms exceeds HUF 500 million. For cost recharges, documentation is also required only if the threshold of HUF 500 million is exceeded; however, in such cases, the preparation of a simplified local file is sufficient. It is important to note that, compared to the previous rules, the content requirements of the simplified local file have also changed.
• Significant modifications were introduced in relation to the definition of low value-adding services and the accepted pricing approach for such services.
• It will be mandatory to perform and document a benefit test for services and financial transactions, assessing whether the transaction was genuinely necessary for the taxpayer’s business activity.
• Segmentation of corporate-level data is required if the tested party performs multiple activities and separate transfer pricing analyses are prepared for each.
• The decree sets out specific rules for database searches, including e.g. geographical scope and the number of years of data that must or may be considered.
• The draft decree stipulated that transfer pricing documentation could only be prepared in English and Hungarian.

On 23 December 2025, the final decree (45/2025. (XII. 23.) NGM Decree on transfer pricing documentation and reporting) was published in Issue 157 of the Hungarian Gazette, replacing the previous regulation, 32/2017. (X. 18.) NGM Decree. As expected, the new decree does not introduce major changes compared to the draft, but there are still some modifications, summarised below:

• A master file is only required if the total arm’s length value (excluding VAT) of transactions subject to local documentation obligations exceeds HUF 500 million. This means that, contrary to the draft regulations, if a company has many smaller transactions that individually do not reach the local file threshold but collectively exceed HUF 500 million, a master file is not required.
• Transfer pricing documentation may now be prepared in German, in addition to English and Hungarian.
• Only for limited-risk distribution, it is not necessary to justify the use of the transactional net margin method (TNMM), the application if the net margin as profit level indicator and the selection of the distributor as the tested party. For consignment distribution, this justification remains mandatory.

The new decree enters into force on 23 January 2026. Taxpayers may choose to apply its provisions to documentation for tax years started in the 2025 calendar year; however, for tax years starting in 2026, compliance with the new rules will be mandatory.

While the new regulations do attempt to simplify the documentation requirements in several areas, they also introduce new aspects and more detailed rules in many cases, for which timely preparation is advisable. If you require further guidance on this topic or would like to engage our assistance in preparing your transfer pricing documentation, our professional transfer pricing team is at your disposal.