Hungary to restore KATA small‑business tax from 2027

Finance Minister András Kármán announced that the Hungarian government plans to reinstate the KATA tax regime for micro‑enterprises and self‑employed workers on a wide basis starting in 2027, with the first steps expected in January 2027. The revival will replace the restrictive version introduced in 2022, which sharply reduced eligibility and led hundreds of thousands of entrepreneurs to lose the scheme.

Kármán said the goal is to provide “a simple, predictable tax that does not burden micro‑businesses with disproportionate administration” and to introduce a “broadened, improved version with safeguards against abuse”. The new framework will also ensure full social‑security and pension rights for KATA taxpayers and aim to prevent its use for concealed employment by larger firms.

During its peak, KATA covered about 460 000 small companies and generated roughly 200 billion forints in annual revenue. Business chambers such as the Hungarian Chamber of Commerce and Industry have presented multi‑option proposals, and the government has pledged substantive stakeholder consultation before finalising the redesign.