Hungary plans to expand KATA small‑business tax to 300,000 entrepreneurs by 2027

The GKI Gazdaságkutató research institute estimates that 300,000‑350,000 micro‑enterprises could switch to the KATA flat‑rate tax regime when the Hungarian government widens eligibility in 2027. The proposed amendment would restore broader access to the KATA system, which has been popular for its low administrative burden and a monthly fee of 50,000 forint. It aims to retain the regime’s simplicity while adding safeguards against hidden employment.

KATA, introduced in 2013, once served over 440,000 businesses and generated roughly 200 billion forints in annual tax revenue. Following a 2022 crackdown on abuse, the number fell to about 145,000 users. The upcoming changes could affect sectors such as logistics, trade and manufacturing, and may influence employment practices and state revenues once enacted around the 2026‑2027 legislative cycle.