The taxation of corporations under corporate income tax

We would like to report to you about the most important Hungarian Law amendments affecting corporations, such as corporate income Tax, relevant for 2025

Tax base adjustments

According to the amendment, which already entered into force on November 29, 2024, double cost and expense deductions may only be recognised as a reduction item on the basis of the same facts if revenue has also been double recognised.

Depreciation of land used for the storage of hazardous waste will also be available in corporate tax with a retroactive effect already for 2024.

From January 1, 2025, supports to a professional sports organisation operating in spectator team sport and earning at least 75% of its turnover from such sports activities will become eligible as recognised costs and expenses, subject to certain conditions. By this, support to sport organizations may generate tax advantages to the grantor in 3 different ways.

Changes affecting tax benefits from November 29, 2024

Spectator team sports may also be supported under a new title by paying the operating costs of properties connected to sport activities – under conditions.

R&D tax credit that were recently introduced as a form compliant with the global minimum tax may first be applied to research and development projects started on or after January 1, 2024.

Small Business Tax (KIVA)

If a KIVA company is transformed by merger or division, as from November 29, 2024, the legal successors may retain their small business tax status if the asset revaluation took place during the transformation. The KIVA taxpayer status is established on the day of the merger or division if their conditions continue to exist, and the option is exercised by its reporting to the Hungarian Tax Authority within 15 days.