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Hungary Tax Deductions















The tax system in Hungary permits tax relief in the form of a deduction (a reduction in the taxable income) and in the form of a direct credit of the amount of tax payable (tax credit).
Personal Deductions
An individual may receive a tax credit in the following circumstances:
  • A credit for children - HUF 62,500 per month for families with one or two children.
    HUF 206,250 per month for families with three or more children.
  • Payments to insurance funds - a credit of 20%. Up to a limit.
  • Repayment of loans for a residence - a credit up to a limit.
  • Donations to public institutions or church, up to 1% of the tax payable.



Hungary Business Deductions
  • Offset of losses - a loss may be offset forward indefinitely up to 50% of the current year's income. There is no carry back of losses.
  • Transactions between affiliated parties - parties are defined in law as affiliated
    when one parties holds more than 50% of the shares of the other or has 50% or more of the control over the other.
    The price for transactions between affiliated parties that are completed on payment of a sum that is significantly higher than the market price is not allowable.
  • Related parties have to report the tax office about such transactions prior to the tax return.
  • Consolidated Returns A consolidated tax filing is not allowed in Hungary.


Hungary Depreciation of Fixed Assets

Depreciation is allowable at the following rates

Class of Asset Annual Depreciation (%)
Buildings 2-6
Machinery and equipment 14.5/33
Computers 50
R&D 50







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