Hungary implements stricter corporate tax and environmental regulations

New regulatory measures in Hungary have taken effect, targeting corporate transfer pricing and environmental compliance.

Under new transfer pricing rules, companies with transactions between related parties exceeding 150 million forints face increased documentation and data reporting requirements. The Hungarian Chamber of Commerce and Industry (MKIK) is launching a lecture series across several cities, including Budapest and Győr, to guide businesses through these changes. The regulations aim to prevent artificial profit shifting to lower-tax jurisdictions by enforcing stricter standards for determining market prices and group services.

Simultaneously, a government decree has increased the maximum fines for environmental violations. For companies with annual net revenues exceeding 100 million forints, the upper limit for fines related to unauthorized activities has risen from 2 billion to 5 billion forints, or 5 percent of the previous year's net revenue. Repeat offenders face mandatory minimum fines of 0.5 percent of their annual net revenue, or at least 5 million forints. The Ministry for Environmental Responsibility aims to ensure that environmental pollution is not treated as a mere cost of doing business.