Summer Tax Package Proposal

On 17 July 2026, Bill No. T/387 was submitted to Parliament, representing the first tax omnibus bill of the new Government. According to the general justification, the bill aims to fulfil commitments undertaken in the Recovery and Resilience Plan, implement related undertakings included in the government programme, carry out tasks prescribed by government resolutions, regulate the legal status of the President of the National Tax and Customs Administration, and introduce other substantive and technical amendments.

Trust Management (BVK)

The rules governing trust management would change significantly. Under the new regulation, no tax liability arises upon the transfer of assets, meaning that the reintroduction of input taxation is not envisaged. Thus, the tax rules relating to asset transfers remain practically unchanged and are carried over from the previous regulation.

However, two new rules related to asset settlement deserve attention. Under the first new rule, when a crypto‑asset is transferred into a trust or into the ownership of a private foundation, no asset value increase may be established. In the case of transferring crypto‑assets, the income of the individual transferring the asset is governed by Section 5.

The second new rule provides that if the asset transferred consists of shares acquired through a beneficiary share exchange (and the individual involved previously opted for tax exemption for the transaction, which in practice meant a tax deferral), then the asset value increase shall be the amount by which the accounting carrying value of the share exceeds the acquisition value defined in Section 77/A (8) b) of the Personal Income Tax Act.

If a given asset is distributed to the beneficiary in an unchanged form at any time (i.e., without a five‑year holding period), no tax liability arises upon distribution. This is because the Personal Income Tax Act defines as tax‑exempt any asset value granted from the initial capital that is identical in form to the asset originally transferred. At the same time, the Act signals through the acquisition value available to the beneficiary that the beneficiary did not contribute financially to acquiring the asset. In such cases, the beneficiary may only take into account the acquisition value (excluding crypto‑assets) that the settlor or founder (or joining party) could have taken into account.

Under the new rules, “unchanged form” does not mean that a security results in the distribution of a security or that real estate results in the distribution of real estate. Rather, it means that the same X‑share or the same property that was originally settled is distributed.

The Personal Income Tax Act (in addition to asset value granted from reserves in the form of yield) defines as dividend any income (or part of income) granted from the initial capital in a form different from the asset originally transferred by the settlor or founder (or joining party), provided that it does not exceed the amount of the asset value increase recorded in the separate register.

Tax Benefits Related to Heritage Buildings and Public Interest Foundations

Tax benefits related to heritage monuments and public‑task‑performing public interest asset‑management foundations will be phased out, and the growth tax credit will also be abolished.

The tax base allowance for donations made to public‑task‑performing public interest asset‑management foundations will cease on 1 August 2027. Regarding the phasing out of monument‑related tax benefits from 1 January 2027, a transitional rule states that monument‑related tax base reductions may be applied for the last time in the 2026 tax year, provided the eligibility criteria are met. Consequently, unused benefit balances acquired under point ty) may not be carried forward to tax years following 2026.

Abolished Taxes

To simplify the tax system and reduce the number of taxes and other payment obligations—particularly in light of commitments under the 2021–2026 Recovery and Resilience Plan (RRF)—the following taxes will be abolished:

• the animal control contribution,
• the immigration special tax,
• the municipal tax.

Phasing Out the Carbon Quota Tax

The amendment aims to strengthen the “polluter pays” principle in relation to the air pollution charge. The carbon quota tax will be abolished, and the air pollution charge will increase significantly. The charge rates have long remained unchanged. With the amendment, the unit charges payable for emissions of sulphur dioxide, nitrogen oxides, and non‑toxic solid substances will double. Higher charges are intended to encourage emission reductions and the adoption of cleaner technologies.

Tower Consulting, a Budapest-based accounting and payroll firm, together with its cooperating partners, is at your disposal for any accounting, payroll or tax advisory matters — in Budapest or anywhere in the country via remote, online channels.