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Corporate Tax in Hungary

Corporate Tax in Hungary

The corporate tax in Hungary applies to all of the companies incorporated here. The corporate tax has a standard value of 9% and special rates apply according to the amount of taxable income. Below, our lawyers in Hungary invite you to discover how the corporate tax is levied.

Companies subject to corporate tax in Hungary

All companies incorporated in Hungary must pay the standard corporate income tax on their worldwide profits. Foreign companies that are not incorporated in Hungary but have their management located in Hungary are still perceived as local residents and are subject to corporate tax.

However, in order to prevent double taxation, Hungary has signed treaties with more than 60 countries. Foreign companies that carry out taxable activities in Hungary and have a permanent office in the country are subject to corporate tax only on their net profits produced via Hungarian sources.

Investors should consider the taxes applied to the types of companies that can be incorporated in Hungary. Our lawyers in Hungary can help you with more information about the tax laws in Hungary.

The minimum tax base in Hungary

The minimum corporate tax base is determined as 2% of total income, with certain increasing and decreasing components, such as transactions covered by the EU Merger Directive.  In this scenario, a Hungarian business has two options:

  1. making a statement in the corporate income tax return;
  2.  choosing to pay corporate tax based on the minimum tax basis.

Additional financial details must be provided in the statement.  They will be used by the Hungarian National Tax and Customs Administration to determine whether an audit is required or not.

Different tax rules will apply if the profit before taxes or the general tax base (whichever is higher) is less than the minimum tax base. There are also exceptions that cover the first tax year and other specific cases.

Please address our lawyers and accountants in Hungary for clarifications related to the new provisions of the corporate tax.

New corporate tax rules in Hungary

In 2024, the tax rules applied to companies in Hungary will suffer various modifications. Among these, the new corporate tax rate of 9%, as well as certain credits to make the country more appealing to investors.

Here are the main changes to consider if you are interested in opening a Hungarian company:

  • a new tax credit for research and development (R&D) expenses;
  • various changes to the participation exemption and the deductibility of expenses;
  • the implementation of the EU global minimum taxation directive into domestic law.

For detailed information on the new rules, you can get in touch with our Hungarian law firm.

The minimum global tax

Hungary adopted the global minimum tax, or GLOBE regulations, on January 1st, 2024. Multinational groups of businesses with annual revenue of more than EUR 750 million are subject to the regulations. The main idea behind the GLOBE regulations is that such a group will have to pay an extra tax if its effective tax rate in another country falls short of the minimum 15% rate.

The 15% effective tax rate in Hungary is determined by taking into account the Robin Hood tax, local business tax, innovation contributions, and the corporate tax rate of 9%. Additionally, a number of new clauses and temporary exemption guidelines have been created.  June 30th 2026 is the deadline for the first minimal tax return.

Our Hungarian lawyers are at your disposal with complete details about the new minimum global tax to be imposed on company groups.

How is tax residency determined in Hungary?

For corporate tax reasons, enterprises are considered residents if they are incorporated in Hungary. However, if a foreign corporation has its place of management in Hungary, it may also be considered a Hungarian resident.

Foreign corporations or branch offices may be used by overseas enterprises to do business. Representative offices may be established for non-commercial operations that do not result in a taxable presence.

You can count on our specialists if you are a foreign citizen who wants to set up a company in Hungary. We are also at your disposal with services related to immigration to Hungary.

Corporate filing requirements in Hungary

In order to pay their taxes in Hungary, companies must file annual corporate income tax returns. For this purpose, they need to consider the following:

  • the return due date for existing companies is May 31st of the current year for the previous one;
  • the payment date is also May 31st of the current year for the anterior one;
  • estimate payments are also available on a monthly or quarterly basis.

If you want to know more about how the alternative minimum tax is calculated in Hungary, please contact our Hungarian lawyers. We can also provide support should you want to apply for Hungarian citizenship.