New tax rules in Hungary: we present all the details from the first package

Below is an article written by RSM's team of tax experts.

Personal income tax Crypto transactions – new rules for accounting for losses

From 2025, an important change for traders of crypto assets is that losses from transactions involving crypto assets declared in any year prior to the tax year, which have not yet been accounted for as tax adjustments, can now be taken into account when determining the amount eligible for tax adjustment. Previously, this option only applied to the two preceding tax years. Individuals will also be required to keep separate records of their losses. This new rule will apply to tax returns for the 2025 tax year, meaning losses accumulated in previous years can also be written off.

Corporate income tax

The draft bill will mean a tightening of the rules for companies that conduct R&D activities in cooperation with higher education institutions, research institutes or the Hungarian Academy of Sciences (HAS or MTA). In future, they will only be able to claim 10% of their R&D costs as a tax credit. Previously, the full amount of costs incurred for such activities could be taken into account as a tax credit. However, the tax credit for other R&D activities has already been capped at 10% of eligible costs.

Additionally, the draft includes a clarifying amendment concerning the transfer of 1% of the subsidy for sports academy support.

Value-added tax

Regarding group taxation, the planned amendment clarifies the rules for appointing a group representative in the event of termination of the representative's appointment. Additionally, the scope of joint and several liability for group members and non-group taxpayers will be expanded. From 2026 onwards, this will apply not only to VAT, but also to the legal consequences specified in the Act on Tax Administration.

Further clarifications also concern the detailed rules for domestic summary reporting.

Néhány további pontosítás érinti a belföldi összesítő jelentés részletes szabályait is.

Duties

Exemptions from the gift tax are supplemented by loans to members that are waived during the liquidation process.

KIVA

Although significant changes to Kata (itemized tax liability of small taxpayers) and Kiva (small business tax) are still pending, a minor relief has been included in the current tax package. The change to small business tax legislation clearly separates cash from electronic funds, meaning these will not have to be taken into account when determining the amount recorded in the cash register.

Family tax breaks – expansion continues

The tax exemption for mothers with three children came into effect on 1 October 2025. However, it is important to note that, in order to claim the exemption during the year, a tax advance declaration must be submitted to the employer. If this is not done, the tax exemption can be claimed retrospectively in the tax return, which must be submitted by 20 May 2026.

From 1 January 2026, the tax base allowance per dependent will also increase. The monthly tax base reduction for one child will increase from HUF 100,000 to HUF 133,340, while the allowance for two children will double.

Other changes

The suspension of advertising tax has been extended until 31 December 2026, meaning that advertisers and media service providers will remain exempt from paying advertising tax next year.

Regarding registration tax, it has been clarified that if the owner and operator of a vehicle are not the same person, the registration tax must be paid by the owner.

Only textual clarifications have been made regarding insurance tax, but the current temporary retail tax rates will be extended until the end of 2026.

The law on local taxes supplements the definition of property rights to include the rights of lessees and buyers with respect to ownership retention. Furthermore, local governments' taxing rights will be limited; from 2026 onwards, municipal tax will no longer be levied on arable land, forests or associated property rights.

Cover photo: MTI Photo/MTI Photo Editing/Róbert Hegedüs