Tax News - Other taxes

Excise tax, motor vehicle tax, and acquisition duty: Starting in 2025, the law introduces automatic, inflation-adjusted tax increases (indexation) for certain taxes, including the excise tax on fuel and alcohol, the motor vehicle tax, and the acquisition duty. The rate of indexation corresponds to the average inflation rate measured by the Hungarian Central Statistical Office (KSH) on July 1 of the year preceding the tax year. As a result, the statutory tax rates for these taxes will increase by 4.1% in 2025. The applicable tax rates will be published by the National Tax and Customs Administration (NAV). From 2026, indexation will also be extended to additional taxes, including the company car tax, registration tax, and tobacco product tax.

The fixed monthly company car tax rates will increase by approximately 20% in 2025. Additionally, from 2025, plug-in hybrid vehicles classified as 5P and 5N (with a purely electric range of at least 25 km and 50 km, respectively) will no longer be considered environmentally friendly vehicles. As a result, they will lose their exemption from the registration tax, which will now only apply to purely electric vehicles. The exemption from the company car tax will also be removed for these categories. However, for companies established before January 1, 2025, the tax exemption will only be discontinued from 2026.

Retail surtax: From 2025, platform operators that provide online interfaces for retailers to sell goods will also be subject to the retail surtax, even if they do not engage in direct retail activities themselves. The law will also impose a tax on the Hungarian revenues of foreign platforms, but only for goods delivered within Hungary.

Special tax on credit institutions and financial enterprises: In 2025, reduced tax rates will apply. Companies with revenue up to HUF 20 billion will be taxed at 7%, while those exceeding this threshold will be subject to an 18% tax rate.

Advertising tax: The advertising tax rate will remain at 0% in 2025.

Social contribution tax (szocho): The law tightens the exemption conditions for capital gains on Long-Term Investment Accounts (TBSZ). Social contribution tax (szocho) exemption will only apply if full income tax exemption conditions are met, meaning that the savings remain in the TBSZ for at least five years. If the savings are withdrawn after 3–5 years, an 8% szocho applies, while withdrawals before three years will be subject to a 13% szocho.

Unless otherwise specified, the social contribution tax payable by the payer must be declared and paid quarterly.

Tax Procedure: A new tax authority procedure, the data reconciliation procedure, will be introduced. Under this procedure, the National Tax and Customs Administration (NAV) will notify the taxpayer to clarify any discrepancies or errors found in the data available to the authority, originating from the taxpayer or other taxpayers. The taxpayer will have 15 days from the date of notification to respond. Failure to meet this deadline may result in a HUF 300,000 tax penalty.

Obligation to Open a Payment Account: The Hungarian branch of a foreign company will also be required to open a Hungarian payment account.