Hungary initiates budgetary reforms and increased tax audits

Hungarian authorities are intensifying oversight of financial structures and budgetary frameworks. The National Tax and Customs Administration (NAV) has included trust asset management (BVK) and private foundations in its 2025 audit plan. New legislative changes effective August 31, 2026, will mandate the inspection of these structures, potentially covering both active and dissolved managed assets. Under the new rules, the tax treatment of capital distributions will change; if accumulated results are available, capital withdrawals may be taxed as dividends up to the amount of the asset value increase.

Simultaneously, Finance Minister András Kármán has ordered a comprehensive review of the public finance framework. A specialized working group has been established to analyze the legal regulatory environment and the budgetary framework system. The group is tasked with examining the Budget Council, institutional structures, and expenditure review systems. The working group is expected to deliver a detailed situational analysis and a reform concept by November 30, 2026, following a series of consultations with stakeholders.