2026 Summer Tax Package – Key Changes Affecting Businesses

On 28 July 2026, the National Assembly adopted the summer tax package, which was published in the 30 July 2026 issue of the Hungarian Gazette. Act XXXV of 2026 amends the Hungarian tax system in several stages: some provisions are already applicable in 2026, whilst other changes will come into force in 2027.

The package is not merely about the abolition of certain types of tax. Among other things, it introduces significant changes to the taxation of trust assets, removes certain corporate tax reliefs, simplifies the rules on retail tax, and overturns the additional data reporting previously planned for the M-form of the VAT return.

We have summarised the most important information for businesses and the practical aspects of preparing for these changes.

VAT returns: no expansion of data requirements on the M form

Under the previous rules, the itemised data reporting requirements for invoices received would have been significantly expanded from 1 July 2026. Among other things, businesses would have been required to provide data on the amount of VAT claimed as a deduction, broken down by tax rate.

The summer tax package reverses this change. The M-form of the VAT return must continue to include the data previously required, namely the taxable amount shown on the invoice, the amount of tax charged, the invoice number, and the date of supply or – in the absence of this – the date of issue of the invoice.

This is a welcome administrative change, as businesses do not yet need to adapt their accounting systems and internal data reporting processes to the more detailed data requirements originally envisaged. The new provision also applies to returns for the tax assessment period covering 1 July 2026.

Taxation of trust management is set to change

One of the most significant elements of the summer tax package is the amendment to the personal income tax rules governing trust management and private foundations. The new provisions will come into force on 31 August 2026.

The regulations will continue to allow these arrangements to serve long-term wealth planning, asset protection and generational succession objectives, whilst narrowing the scope of cases in which payments from the assets under management can be made tax-free. The new system introduces detailed record-keeping and income assessment rules, and treats the increase in asset value reported at the time of asset transfer, as well as subsequent asset disbursements, separately.

In the case of existing trust arrangements and private foundations, it is particularly important to examine the transitional provisions. It is advisable to review the tax implications of future payments, distributions of assets and the accounting method used before the new rules come into force.

Corporation tax: several allowances are to be abolished

The legislator has decided to abolish several currently applicable reliefs in order to broaden the corporate tax base.

Allowances relating to listed buildings

Tax base allowances relating to the maintenance, renovation and investment in listed buildings, as well as the possibility of transferring such allowances between associated companies, will be abolished.

The allowances may be used for the last time to reduce the corporation tax base for the tax year beginning in 2026. Any relief accrued previously but not utilised by the end of 2026 cannot be carried forward to subsequent tax years. The businesses concerned would therefore be well advised to assess their available relief balance whilst planning their 2026 tax affairs.

The growth tax credit will be abolished

In 2027 the growth tax credit will be abolished from 1 January, so it will no longer be possible to opt for it after that date.

Obligations relating to growth tax credits arising in the 2026 tax year or earlier and still outstanding may continue to be met in accordance with the rules in force on 31 December 2026. However, the tax reduction relating to investments may only be applied to tax instalments due before 1 January 2027.

Concessions relating to support for KEKVAs are being scaled back

Corporate tax relief linked to grants provided to public-interest asset management foundations performing public functions – i.e. KEKVAs – will also be phased out.

The 20 per cent and 40 per cent tax base allowances will cease to apply from 1 August 2027. The 300 per cent allowance relating to support for higher education institutions operated by a KEKVA may, under a transitional rule, be claimed for the last time in the tax year beginning in 2027. It is therefore advisable to examine the date of the contract, the legal status of the supported organisation and the applicable transitional rules before making any funding decisions.

Retail tax: the aggregation of affiliated undertakings will cease

A welcome simplification is that, in future, the net turnover of associated enterprises from retail activities will no longer need to be aggregated. Individual companies will be able to determine their tax and tax advances independently, based on their own tax base.

The new rule will not apply to the tax year beginning in 2026 either. The change may reduce the administrative burden on the group of companies concerned and, depending on the specific group structure and turnover figures, may also affect the tax burden.

Abolition of certain taxes and environmental changes

As part of the simplification of the tax system, several public levies affecting a relatively narrow group of taxpayers will be abolished. The following will be abolished with effect from 1 January 2027:

• the special immigration tax;
• the local authority tax;
• the dog licence fee.

The carbon dioxide quota tax will be abolished with retroactive effect from 7 October 2023, in accordance with the law. Tax previously paid, together with interest thereon, may be reclaimed upon application, provided the taxpayer has not otherwise enforced their claim. A 90-day time limit, after which the right to claim lapses, applies for the submission of the application, calculated from the date the relevant provision comes into force.

At the same time, the rules governing environmental charges are being tightened: from 1 October 2026, the unit rates for air pollution charges will double. This is likely to affect, in particular, businesses engaged in manufacturing and industrial activities that generate emissions.

What should businesses prepare for?

As the changes will come into force at different times, it is advisable to begin preparations by assessing the extent to which they will affect the business. In particular, it is advisable to:

• review existing trust and private foundation structures;
• reviewing the corporation tax reliefs that can still be utilised in the 2026 tax year;
• examine the payment schedule and investment allowance associated with the existing growth tax credit;
• recalculate the retail tax liability for individual members of the group;
• check the eligibility and deadline for claiming a carbon tax refund;
• assess the expected cost impact of the increase in the air pollution charge.

The 2026 summer tax package introduces simplifications in several areas, whilst at the same time restricting certain tax planning opportunities and creating new obligations. The effective dates and the precise interpretation of the transitional rules always require an examination of the specific circumstances of the business in question.

Leave your tax affairs to us so that you can focus on your business! Central Audit’s experts will help you assess how the new rules will affect your business and what steps are necessary to ensure tax-efficient operations in compliance with the legislation.