Hungary proposes major tax reforms and pension increases

Hungarian tax reform wealth tax corporate tax pension increase kata tax

The Hungarian government has submitted a comprehensive tax and budget package to Parliament, featuring significant changes to personal income tax, corporate taxation, and social benefits. Key measures include reducing the personal income tax for minimum wage earners to 9 percent, which is expected to increase their monthly disposable income by 20,000 forints. The government also plans to double the family allowance and increase the lowest pension to 120,000 forints.

Corporate tax reforms include maintaining a 9 percent rate for small businesses while introducing a 15 percent rate for large companies with annual revenues exceeding 500 million euros. A new progressive advertising tax is scheduled to take effect on January 1, 2027, with exemptions for smaller media entities earning under 500 million forints. Additionally, the 'kata' simplified tax system will be reformed, increasing the revenue threshold from 18 million to 22 million forints and allowing for invoicing companies under specific conditions.

A new wealth tax is also proposed, targeting net assets exceeding 1 billion forints with a 1 percent rate, rising to 1.5 percent for assets over 100 billion forints. This tax is expected to generate approximately 200 billion forints annually. While public support for the wealth tax is high at approximately 85 percent, some business leaders have expressed concerns regarding its potential impact on investment and competitiveness.

Entities

András Kármán · Csányi Péter · GKI Gazdaságkutató Zrt. · Hungarian Ministry of Finance · Hungarian Parliament · Hungarian government · Hungary · Kármán András · Magyar Péter · Ministry of Finance · OTP Bank · Péter Csányi

Claims

What the coverage asserts, and how many sources carry each claim.

[● 4 SOURCES] The 'kata' tax revenue threshold will increase from 18 million to 22 million forints. sikerado.hu · tudas.hu · www.economx.hu · divany.hu
[● 4 SOURCES] Large companies with annual revenues over 500 million euros will face a 15 percent corporate tax rate. haszon.hu · hir.ma · www.vg.hu · hirklikk.hu
[● 4 SOURCES] A progressive advertising tax will be introduced starting January 1, 2027. haszon.hu · hirklikk.hu · mfor.hu · www.vg.hu
[● 5 SOURCES] A wealth tax will apply to net assets exceeding 1 billion forints. sikerado.hu · tudas.hu · www.vg.hu · www.klubradio.hu · szabolcsihir.hu
[● 4 SOURCES] The lowest pension will be increased to 120,000 forints. haszon.hu · hirklikk.hu · mfor.hu · www.vg.hu
[● 4 SOURCES] The family allowance amount will be doubled. haszon.hu · hirklikk.hu · mfor.hu · www.vg.hu
[● 4 SOURCES] The personal income tax for minimum wage earners will be reduced to 9 percent. haszon.hu · hirklikk.hu · mfor.hu · www.vg.hu
[● 2 SOURCES] 85 percent of the surveyed Hungarian population supports the wealth tax. szabolcsihir.hu · www.klubradio.hu