Europe · Tax guide
Hungary
Hungary has the EU's lowest corporate tax at 9% and its highest VAT at 27%, plus a local business tax of up to 2% on adjusted revenue. It requires real-time invoice reporting and applies the global minimum tax. Taxes are administered by the National Tax and Customs Administration (NAV).
At a glance
- Corporate income tax
- 9%
- Local business tax
- up to 2%
- VAT
- 27%
- Small business VAT exemption
- HUF 20,000,000
- Social contribution tax
- 13%
- Global minimum tax
- 15%
Flat rate
On adjusted revenue
Reduced rates 18% and 5%
Annual turnover
Paid by employers
Groups with revenue of €750 million or more
Corporate taxes
Companies pay corporate income tax at 9%, and municipalities charge a local business tax (HIPA) of up to 2% on revenue less certain costs. The annual return is due by the end of May.
VAT and invoice reporting
VAT is charged at 27%, with reduced rates of 18% and 5%. Businesses with turnover up to HUF 20,000,000 can use the small business exemption. Every invoice issued to a business must be reported to NAV in real time through the Online Számla system.
Employers
Employers pay a social contribution tax of 13% on salaries and withhold the employee's personal income tax and social security.
Transfer pricing and the global minimum tax
Related-party transactions must be at arm's length; documentation is required where related-party transactions exceed HUF 100 million a year. Groups with revenue of €750 million or more are subject to the global minimum tax at 15%.
Key dates
- By the 20th of each monthVAT and payroll returns
- Real timeInvoice data reporting (Online Számla)
- End of MayCorporate income tax and local business tax returns
Figures and sources
9 figures- Corporate income tax rate9%Under professional review
- VAT standard rate27%Checked against the official source
- Local business tax (HIPA) on adjusted revenueup to 2%Under professional review
- VAT reduced rates18% and 5%Checked against the official source
- Annual turnover limit for the small business VAT exemption in 2026HUF 20,000,000Checked against the official source
- Social contribution tax paid by employers13%Under professional review
- Global minimum tax rate15%Under professional review
- Group revenue for the global minimum tax€750 millionChecked against the official source
- Annual related-party transactions above which documentation is requiredHUF 100 millionChecked against the official source
Indicative only. This assessment is a high-level overview of tax obligations in Hungary based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Hungarian tax adviser before making compliance decisions.