CHANGES IN TAX PROCEDURES

We would like to inform you about the most important Changes in Hungarian Law concerning tax procedures in Hungary, relevant for 2025.

data reconciliation procedure

The tax authority will introduce a new data reconciliation procedure from 2025, which will take place if the taxpayer and its business partner provide different data, for example in the field of online invoice data reporting or community sales. The taxpayer is obliged to carry out the data reconciliation within 15 days of receiving the notice, otherwise it may be subject to a default fine of HUF 300,000 (approx. EUR 730).

compliance audits and transfer prices

The scope for compliance audits will be extended to transfer prices and authorizes the Hungarian Tax Authority to investigate related party transactions and their transfer pricing even before the end of the reporting period. The deadline for such audits will be 60 days.

time limit of APA

The time limit of APA (Advance Pricing Agreements in transfer pricing cases) procedures is extended to potentially cover 90-days extension 2-times.

Personal interview in the tax administration

From 2025, a person summoned for a personal interview in tax administration proceedings may also be interviewed via an electronic communications network.

late payment surcharge

From 2025, the rate of late payment surcharge will be adjusted to the rate already valid in tax proceedings during the enforcement of claims transferred under the General Administrative Code.

maximum default penalty

It was enacted that the maximum default penalty for natural person taxpayers is HUF 400,000 (approx. EUR 975), while for non-natural persons it may reach HUF 1 million (approx. EUR 2,450). The maximum default penalty for a deficiency of reporting employees, issuing invoices and receipts and keeping documents is HUF 2 million (approx. EUR 4,900). The sanction of store closure may be eliminated by the payment of a fine, subject to conditions.

deletion of the tax number of a company

The tax authority will delete the tax number of a company which, despite the warning, fails to comply with its obligation to submit a VAT summary declaration, monthly tax and contribution return or VAT return within 90 days.

exemption application

From January 1, 2025, an exemption application may be submitted in the tax registration procedure if the terminated taxpayer settles its tax debt. Members or shareholders will now be able to do the same.

registered office service provider

From January 1, 2025, the authority will verify whether the registered office service provider is included in the register. If not, they will call the taxpayer to withdraw the application or find another provider.

tax identification number

If a foreign employee according to the rules on the entry and residence of third-country nationals does not have a tax identification number, the employer may also request the Hungarian Tax Authority to establish it.

final tax return bevor the dissolution

From 2025, the final tax return on the dissolution of group corporate taxpayers must be filed within 90 days of termination.

cash bank account

From January 1, 2025, it will be mandatory for Hungarian branches of foreign companies to open a cash bank account.