The transfer pricing regulation that entered into force this year will become mandatory as of 2026; however, for the 2025 tax year it is already optional to apply the rule that no local documentation is required for transactions below HUF 150 million.
.png "Is it worth applying the new transfer pricing rules for 2025?")
Applying the new transfer pricing regulation already for 2025 may be risky.
Under the transitional provisions, the new rules may already be applied to the local transfer pricing documentation, whereas the previous regulations continue to apply to the transfer pricing data reporting (ATP) and the Master File. This results in a dual compliance framework and an increased risk of errors, which may need to be explained in the context of a NAV tax audit.
A benchmark analysis remains mandatory even where transfer pricing documentation can be omitted.
Moreover, although transfer pricing documentation may be omitted for transactions below HUF 150 million, a benchmark analysis remains mandatory for each transaction. Consequently, the administrative burden is not significantly reduced in practice: the analysis must be prepared and the ATP data must be filed.
NAV risk analysis based on transfer pricing data reporting.
A further risk is that the NAV primarily bases its risk analysis on ATP data. In the absence of local transfer pricing documentation, it may be more difficult to defend the applied prices in the course of an audit, as structured supporting evidence is lacking.
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A key challenge is also the stricter segmentation requirement under the new rules, which requires analysis at transaction level. For many companies, this creates significant practical difficulties and may easily lead in 2025 to discrepancies between the logic of the documentation and that of the ATP data.
Overall, early application of the new rules for 2025 is generally not recommended. While it may be justified in certain simpler cases or as part of a deliberate preparation strategy, for most companies it is safer to maintain the current system and prepare for the mandatory transition in 2026.
