Hungary: Tax legislative measures include DAC6 implementation, changes to local tax and VAT

Hungary: Tax legislative measures, DAC6 implementation

Legislation concerning the establishment of the 2021 Hungarian central budget was published on 14 July 2020.


The legislation includes the following tax law changes.

Mandatory automatic exchange of information in relation to reportable cross-border arrangements (DAC6)

The DAC6 reporting deadlines applicable to intermediaries, taxpayers, and the Hungarian tax authority are deferred by six months. Under the measures, the following deadlines are provided:

  • With regard to reportable cross-border arrangements conducted between 25 June 2018 and 30 June 2020—intermediaries and relevant taxpayers must meet their reporting obligation by 28 February 2021.
  • If the reportable cross-border arrangement was conducted between 1 July 2020 and 31 December 2020—the 30-day deadline for intermediaries and relevant taxpayers to file information begins 1 January 2021.
  • In the situations involving marketable arrangements—intermediaries are required to prepare their first period report by 30 April 2021.
  • Using an automatic exchange, the Hungarian tax authority will communicate the information pertaining to reportable cross-border arrangements to the competent authorities of all other member states by 30 April 2021.

Local taxes

Under the legislation, associations and foundations are exempted from paying building tax and land tax in connection with real estate that is under their property management, but in fact are owned by the Hungarian government.

In addition, the legislation repeals the regulation of the local business tax “top-up liability.” This previously applied to those taxpayers that were subject to corporate income tax and kept their books with double-entry bookkeeping, and had net sales revenues exceeded HUF 100 million in the preceding tax year.

To simplify the tax system, the legislation removes provisions concerning local building tax liabilities of advertising platforms from the local tax law.


A reduce value added tax (VAT) rate of 5% has been introduced for the sale of any new residential apartment located in so-called “rust zones” on the condition that the apartment forms part of a multi-apartment building and its size does not exceed 150 m2..

Read an August 2020 report prepared by the KPMG member firm in Hungary

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