The Hungarian National Assembly is considering draft bill T/1614 on amendments to certain tax laws, which was submitted by the government on 18 October 2022. Some of the main measures are summarized as follows:

• New requirements are introduced for the publication of public Country-by-Country (CbC) reports as per Directive (EU) 2021/2101, which generally apply for:
  • ultimate parent entities in Hungary of MNE groups with consolidated annual revenue exceeding HUF 275 billion in each of the last two consecutive financial years; and
  • constituent entities in Hungary of MNE groups with consolidated annual revenue exceeding EUR 750 million in each of the last two consecutive financial years, if the ultimate parent does not fall within the scope of the law of an EU member state;
• New rules are introduced for an optional simplified calculation of the local business tax base for small businesses (entrepreneurs) with annual income not exceeding HUF 25 million (HUF 120 million for retail only), with the taxable base set as follows:
  • HUF 2.5 million taxable base if annual income does not exceed HUF 12 million;
  • HUF 6.0 million taxable base if annual income exceeds HUF 12 million but does not exceed HUF 18 million; and
  • HUF 8.5 million taxable base if annual income exceeds HUF 18 million but does not exceed HUF 25 million (HUF 120 million for retail);
• The application of the reduced VAT rate of 5% on the sale of new residential property is extended by two years until 31 December 2024, which may even apply after that date until 31 December 2028 if the building permit was finalized by 31 December 2024 or the construction has been notified by this date according to the rules of simple notification;
• The effective suspension of the advertising tax is extended until 31 December 2023 (0% tax rate);
• Rules for the exemption from capital transfer tax on real estate transactions between related parties are tightened by requiring that at least 50% of the acquirer's sales revenue is from the leasing, operation, or sale of self-owned real estate, instead of the current rule that the acquirer's main activity is the leasing, operation, or sale of self-owned real estate, which can be circumvented by the registration of a change in main activity.

The measures generally apply from 1 January 2023, although the public CbC reporting requirements are to apply for financial years starting on or after 22 June 2024.