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At a press conference ahead of the signing, Orbán said the eleven-point agreement would save businesses HUF 80 bln-90 blln, which the government would make up for with a higher bank levy.
He added that Hungary was in a position allowing the country to adopt its own national economic policy, instead of following the “wartime economic policy” dictated by Brussels.
Under the agreement, the VAT exemption threshold will rise to HUF 20 mln in 2026, HUF 22 mln in 2027 and HUF 24 mln in 2028. The rate of deductible costs for flat-rate taxpayers will rise from 40% to 45% in 2026, then to 50% in 2027.
Sole proprietors’ social security contribution will be reduced, benefitting 140,000 businesses. Eligibility for the Small Business Tax (KIVA) will be broadened, allowing 4,000-5,000 more companies to adopt the tax form.
A HUF 100 mln tax rebate will be rolled out for remediation ahead of brownfield investments. Tax preferences will be introduced for infrastructure upgrades by Hungarian energy companies. The retail tax threshold will be raised, benefitting 3,500 businesses. An increase in the vehicle fuel excise tax will be postponed by six months, resulting in a HUF 20 bln decline in budget revenue. The threshold for mandatory pre-payment of corporate tax will rise from HUF 5 mln to HUF 20 mln, benefitting 20,000 companies.
The microbusiness revenue threshold for eligibility for submitting simplified reports will rise from HUF 150 mln to HUF 180 mln, benefitting around 10,000 companies, and administration procedures will be streamlined for 80,000 sole proprietors.
After the signing, Bence Gerlaki, the state secretary for tax affairs, said the agreement with the MKIK would have a fiscal impact of HUF 80bn-90bn in 2026, but that amount would climb over HUF 100 bln in later years. He added that the agreement would affect 230,000-240,000 businesses.
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