Hungary: Tax legislative measures approved - KPMG Global
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Hungary: Tax legislative measures approved by parliament

Hungary: Tax legislative measures approved

The Hungarian Parliament on 14 November 2017 approved a package of tax legislation (referred to in English as the “Autumn tax package”) that includes measures concerning tax procedural rules as well as certain provisions that will affect corporate and individual taxpayers.


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The new law will revise the rules on tax audits—including the types of tax audits available, time limits for conducting tax audits, the rules for appeals, among other items.The new tax legislative package includes measures concerning:

  • Corporate income tax treatment of a “development” tax allowance and a “tax donation”
  • Local business tax and the definition of sales revenue
  • A small entrepreneurs’ tax option for law firms
  • Reduced rates of value added tax (VAT) include a new 5% rate of VAT on internet access and certain foods (reduced from 18% or 27%) 
  • Individual (personal) income tax measures on “tax-free” benefits and donations to Hungarian churches
  • Revised rates of social security tax and health care charges


Read a November 2017 report [PDF 197 KB] prepared by the KPMG member firm in Hungary

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