Tax changes adopted in Hungary in autumn 2024

SME INFO Nr.2024-6 Hungary – The Autumn Tax Package 2024 brought quite a lot of changes, both major and little. To give a few examples, there have been several changes in the area of family and housing allowances, to encourage sporting activities, a new tax administration procedure has been introduced the so-called data reconciliation, and platforms are now subject to the retail tax. This publication focuses on changes in tax laws, not comprehensively, as usual, but highlighting topics we consider important.

Download the full SME Info as pdf in English: 
Tax changes adopted in Hungary in autumn 2024 – PS SME Info 2024-6
Töltse le az SME Info hírlevelet magyarul pdf-ben: 
Adótörvényi változások 2024 őszén Magyarországon – PS SME Info 2024-6

 

 

Content table of our downloadable newsletter:

 

1  Personal Income Tax (PIT)

1.1  Clarification of the acquisition date of revenue

1.2  Intellectual property exempt from taxation

1.3  Two-stage increase in family tax base allowance as well as

1.4  Narrowing the scope of persons eligible for the allowance for young couples in first marriage and young people under the age of 25 years

1.5  Use of funds in the voluntary pension fund account for housing purposes for a limited period

1.6  Use of 50% of the amount on the SZÉP card for other purposes

1.7  New SZÉP Card sub-account: supporting an active lifestyle

1.8  Housing support for employees under 35 years of age through preferential taxation

1.9  New tax-free benefit: zoo tickets and passes

1.10  New tax-free benefit: maintenance of sports facilities and provision of sports equipment

 

2  Corporate Income Tax (cit)

2.1  Addition to special provisions on tax avoidance

2.2  Changes related to tax allowance on sponsorship of popular team sports

2.3  Land used for the storage of hazardous waste – depreciation according to the Act on Accounting is eligible

2.4  Tax allowance on support provided to cinematographic works — legislative harmonisation provision

2.5  New eligible cost – free benefits related to certain popular team sports

2.6  The tax base relief based on the crisis communication will be abolished

2.7  Research and development tax incentive

 

3  Value Added Tax (VAT)

3.1  New tax base reduction option

3.2  Subsequent discounts as tax base reduction items — based on receipts

3.3  Tightening of the right of deduction assignment in case of importation of goods

3.4  E-receipt system postponement

3.5  Changes in M-sheets data reporting

3.6  Favourable tax rate for newly constructed homes will remain until the end of 2026

 

4  Local Taxes

4.1  Local Business Tax — Air passenger transport operator — modification to place of establishment rule

4.1  Building tax – new tax exemptions

 

5  Social Contribution Tax

5.1  Allowance for labour market entrants

5.2  Deadline for declaration and payment of social contribution tax for certain defined benefits and non-wage benefits

 

6  Retail Tax

6.1  Platform operator appears as a new taxpayer

6.1.1  Platform operator’s notification obligation

6.1.2  Tax base of the platform operator

6.1.3  Tax of the platform operator

6.2  Changes affecting taxable persons carrying retail activities (not platform operators)

6.2.1  Tax on retail activities

6.2.2  Changes to tax returns

6.2.3  Special requirements for payment of tax

6.2.4  Other modifications

 

7  Small Business Tax (KIVA)

7.1  Narrowing of the allowance for labour market entrants

 

8  Advertisement tax

9.1  Introduction of valorisation mechanism

9.2  Changes affecting the taxation of non-purely electric cars

 

10  Financial transaction duties

   

11  Changes to extra-profit taxes

11.1  Special tax on credit institutions and financial enterprises

11.2  Additional insurance tax

11.3  Retail tax

11.4  Income tax on energy suppliers

 

12  Rules of taxation

12.1  New type of cooperation with the tax authority

12.2  Obligation of Hungarian branches of foreign companies to open domestic bank account

12.3  More favourable deadline for corporate taxpayer groups to submit an interim tax return

12.4  There will be a tighter deadline in the cancellation of tax numbers of non-filers

12.5  „Dutch letter” is amended

12.6  New default penalty in the process of clarifying insurance status

 

13  Tax Administration

13.1  Introduction of a new electronic communications network in hearing

13.2  New possibility to control transfer pricing documentation and reporting obligations

 

Download the full SME Info as pdf in English: 
Tax changes adopted in Hungary in autumn 2024 – PS SME Info 2024-6
Töltse le az SME Info hírlevelet magyarul pdf-ben: 
Adótörvényi változások 2024 őszén Magyarországon – PS SME Info 2024-6

 

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