Page 27 - CEE Tax Guide 2025

3 children per month per child. The amount of family
VAT options in Hungary Applicable / limits
tax allowance will be increased by 50% from July
Distance selling TEUR 10 /year 1, 2025 and doubled from 2026. Mothers raising
Call-off stock or having raised four or more children enjoy lifelong
personal income tax exemption for employment
VAT group registration
income. Employees under 25 years of age are tax
Cash accounting – yearly Approx. TEUR 300/year exempt in the case of they are EEA or Serbian/
amount in EUR (approx.)
Ukrainian citizens. Benefits-in-kind are taxed at two
Import VAT deferment rates, depending on the type of benefit: PIT plus

Local reverse charge Sale of waste, agricultural social tax calculated on a special tax base altogether
products, construction amounting to 33.04% or 28%, respectively, which
services etc. is to be paid only by the employer.
Option for taxation
Active income falls under the scope of the SSC
letting of real estate system: the social security contribution payable

supply of used real estate by the individuals concerned is 18.5%; the
employer’s social tax is 13%. Some passive incomes
VAT registration No
threshold are also subject to 13% social tax; however, there
is an upper limit in the case of dividends. Other
types of passive income (e.g. capital gains on shares
products, financial transactional tax, insurance tax, in stock exchange companies, or interest) are
“chips tax” (levied on unhealthy foods and drinks), exempt from social tax.
and retail tax. The previous green tax on products
heavily polluting the environment (e.g. all kinds
of electric equipment, accumulators and batteries,
packaging materials, etc.) have been replaced
by EPR (Extended Producer Responsibility) fees.

Personal income tax /
Social security system

PIT has a flat rate of 15%, and it is generally
applicable both to active (e.g. salaries, assignment
fee) and passive incomes (e.g. capital gains,
dividend, and interest). Tax payable on active
income can be reduced by family tax allowance
amounting to THUF 20 (approx. EUR 50) for
up to 2 children; and THUF 33 (EUR 80) from

Wage related taxes in Hungary Minimum wage Average wage in private sector
Exchange rate HUF/EUR 411.51 in EUR in HUF in EUR in HUF

707 290,800 1,781 733,064
Total wage cost 799 113.00% 2,013 113.00%
Social contribution tax 92 13.00% 232 13.00%
Gross salary 707 100.00% 1,781 100.00%
Employees’ contributions 131 18.50% 330 18.50%
Personal income tax 106 15.00% 267 15.00%
Net salary 470 66.50% 1,184 66.50%

Dr. Dániel H. Nagy LL.M.
Partner, Head of Tax & Legal Services
Phone: +36 20 406 5582
E-mail: daniel.h.nagy@mazars.hu

Central and Eastern European tax guide 2025 Forvis Mazars 27