Hungary: 2026 Autumn Tax Package Enacted

Hungary has enacted its Autumn Tax Package measures for 2026, aiming to reduce administrative burdens and harmonize legislation. Key changes include a phased increase in the flat tax regime’s lump-sum cost ratio for individual entrepreneurs to 50% and a significant increase in the eligibility thresholds for the small business tax (KIVA) regime. Furthermore, investment allowances have been extended to cover clean technologies and environmental protection goals, the VAT exemption threshold has been raised, and the VAT rate on domestically sold beef has been reduced to 5%.