Hungary offers a straightforward approach to corporate taxation, known for its internationally competitive rates and simple fiscal structure. This overview details the key aspects of the Hungarian corporate income tax regime, including all relevant rates and additional taxes applicable to companies operating in Hungary in 2025.
Corporate Tax Rate and Assessment Basis in Hungary
Hungary applies a flat corporate income tax rate based on a company’s earnings, using the local currency Hungarian Forint (HUF) for assessment.
| Tax Type | Assessment Basis | Rate (%) | Currency |
|---|---|---|---|
| Corporate Income Tax | Corporate | 9% | HUF |
This is a flat rate—Hungary does not use a bracket system for the standard corporate income tax. No minimum or maximum holding periods affect the applicable tax rate.
Surtaxes and Sector-Specific Taxes
In addition to the flat corporate income tax rate, several specific surtaxes apply to certain sectors in Hungary for 2025. Companies should review these carefully, as sector exposure may materially alter their effective tax burden.
| Surtax Description | Rate (%) | Applicable Period | Key Conditions |
|---|---|---|---|
| Energy suppliers’ income tax | 41% | 2023-2025 | Applies to energy producers, energy distribution system operators, mines, universal suppliers, and authorised distributors of electricity and natural gas. From 2026, this rate is reduced to 31%. |
| Extra-profit tax on petroleum products producers | 95% | 2022-2026 | Applies to the difference between the price of Russian crude oil and world market price, minus USD 5/barrel, if positive. |
| Retail tax surtax | 5% | Ongoing | Highest progressive rate for retailers with gross revenues above HUF 100 billion. Lower bands may apply to smaller entities. |
These surtaxes are sector-specific and not broadly applicable to all companies. For entities in these industries, a detailed review of exposures and effective tax rates is essential.
Corporate Taxation: Key Characteristics
- Flat Rate Structure: Hungary’s 9% flat rate is one of the most attractive standard corporate rates in Europe, facilitating straightforward computation and planning.
- No Public Bracket Data: There are no graduated brackets; companies pay the same rate on all taxable profits.
- No General Minimum/Maximum Holding Period: Corporate tax applies on an ongoing basis, without distinction for investment holding periods.
Summary Table: Corporate Tax Overview
| Tax Component | Detail |
|---|---|
| Standard Corporate Tax Rate (HUF) | 9% |
| Brackets | None (flat rate) |
| Key Surtaxes | Energy sector (41%), petroleum products (95%), retail sector (up to 5%) |
| Assessment Basis | Corporate profits |
Pro Tips: Navigating Hungarian Corporate Tax in 2025
- Assess whether your company falls under any of the sector-specific surtaxes. Carefully review annual guidance and sector definitions to avoid unexpected liabilities.
- Monitor planned changes for your sector, such as the reduction of energy sector surtax rates after 2025. Early awareness can shape strategic planning and budgeting.
- Leverage Hungary’s transparent flat rate structure for effective forecasting and scenario analysis in your tax planning.
- Ensure revenue figures and operating activities are accurately classified, particularly if your enterprise approaches the HUF 100 billion retail revenue threshold, to avoid surprises.
Official Resources
For further information and for the most recent guidelines, visit the official Hungarian tax authority main page: https://www.nav.gov.hu/
Hungary’s flat 9% corporate income tax remains noteworthy on the European fiscal landscape. Sector surtaxes mean that businesses in energy, petroleum, or large-scale retail need to conduct more detailed assessments, but the core regime offers clarity and predictability. Most companies benefit from an environment favoring transparency, with limited bracket complexity and stable tax planning outlooks for 2025 and beyond.