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Prime Minister Péter Magyar said Tuesday that the wealth tax would apply from Jan. 1, 2027, at a rate of 1% for assets above HUF 1 bln and 1.5% for assets above HUF 100 bln.
The tax base would include real estate, equity holdings, assets abroad and assets managed by trustees, calculated at market value. Property and vehicle taxes paid could be deducted from the wealth tax.
Liability would be calculated annually based on asset values at the end of the preceding calendar year. The first payment deadline would be Aug. 31, 2027.
Only individuals with net assets exceeding HUF 1 bln would be subject to the tax and required to file a return.
Documents accompanying draft wealth tax legislation published on the government’s website indicate that the measure would affect 15,000 private individuals and 2,000 trustees. It is expected to generate HUF 800 bln in budget revenue.
Magyar said Kata eligibility would be extended to people with second jobs, pensioners and university students who work. Companies and other organizations, rather than only private individuals, would also be allowed to opt for the tax, he added.
More than 100,000 additional small businesses could join the scheme under the revised rules.
The monthly itemized tax for those using Kata for their main source of income would be HUF 100,000. For private individuals, the increase would be phased in, with a monthly payment of HUF 75,000 in 2027 rising to HUF 100,000 in 2028.
Those using Kata for a second job would pay HUF 50,000 a month.
A 15% tax would apply to invoices issued to companies and organizations, with the itemized tax deductible from that liability.
The annual revenue ceiling for Kata eligibility would rise from HUF 18 million to HUF 22 million. Magyar also announced higher thresholds for sick leave and child leave benefits for Kata taxpayers.
The changes are expected to have a net positive budget impact of HUF 60 bln.
The government also plans to reduce the annual income ceiling for professional footballers and other athletes using the simplified tax and contribution scheme (EKHO).
The ceiling would fall from HUF 500 million to HUF 60 million, bringing it into line with the threshold for journalists, actors and other creative professionals eligible for EKHO.
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