Several financial law proposals introduce changes that will affect the daily operations, tax obligations and administrative duties of businesses from 2026 onwards. Although these proposals are not yet final, it is highly likely that they will define the tax environment for 2026 — therefore it is worth preparing in advance.
1. Changes affecting the Act on the Rules of Taxation
One of the most significant amendments aims to simplify and make tax authority procedures more predictable. The proposal clarifies several aspects of tax audits and the rules governing electronic communication between taxpayers and the Hungarian Tax Authority (NAV).
Key planned changes:
Expansion of electronic administration: additional submissions that formerly required paper-based filing will become mandatory to submit electronically. This will speed up procedures but requires stricter attention to deadlines from both taxpayers and accountants.
More transparent audit rules: the proposal specifies in which cases targeted or repeated audits may be launched. While NAV’s powers remain unchanged, the procedural framework becomes clearer.
Taxpayer rating and risk analysis: the amendment allows NAV to classify businesses (reliable, standard, risky) based on a broader data set. The rating may influence the course of certain procedures.
2. Personal income tax (PIT) amendments
Several smaller but practically important clarifications are expected regarding the tax burden of individuals.
Broader income equalisation rules: the “adókiegyenlítés” mechanism will become more precise and flexible, helping individuals reduce their tax base more easily — especially in cases where income or expenses fall into different periods.
Changes affecting crypto transactions: the regulation will be modernised. The proposal eliminates the current two-year limitation for carrying forward losses. This means losses can be offset more flexibly in the future, reducing administrative burden significantly.
3. Corporate income tax – changes targeting companies
Corporate income tax amendments primarily focus on investment, innovation and sustainability.
Clarification of R&D activities: the proposal provides a clearer definition of what qualifies as R&D and how such costs must be recorded — crucial for businesses applying R&D-related tax incentives.
Support for sustainability investments: the legislation places strong emphasis on environmental and energy-efficiency improvements. Related tax incentives will become clearer and more widely applicable.
Administrative simplification for development tax allowances: documentation requirements may decrease, and the reporting process may become simpler.
4. VAT changes – focus on the small-business exemption
One of the most important amendments for small enterprises:
Increase of the VAT exemption threshold: from 2026, the current HUF 18 million limit will rise to HUF 20 million.
Planned schedule:
2026: HUF 20 million
2027: HUF 22 million
2028: HUF 24 million
This is a significant relief for businesses operating near the threshold and provides more flexibility for lower-revenue enterprises.
Higher cost allowance in the flat-rate taxation regime: the current 40% cost ratio will increase to 45% in 2026 and 50% from 2027. This results in an effective tax reduction for many sole proprietors.
Simplified social contribution base calculation: the social contribution tax base will be calculated on 100% instead of 112.5%, which reduces complexity and lowers contributions.
Easier administration
More flexibility regarding VAT exemption
Positive changes for sole proprietors
A clearer and more predictable audit framework
Incentives for R&D and sustainability
More modern PIT and crypto taxation rules
Overall, the amendments aim to reduce the burden on businesses, modernise the tax system and support sustainable operations.
At Everest Accounting Zrt., we closely monitor legislative changes each year.
If you would like us to review:
whether the amendments affect your current tax structure,
whether it is advisable to adjust your business setup,
how to optimise your tax burden from 2026 onward,
please feel free to contact us.
Best regards,
Everest Accounting Team