Comprehensive accounting & reporting for international businesses

In Hungary, all companies must submit regular accounting reports (in Hungarian) from the date of their incorporation. We are aware that some countries are more flexible or lenient in this regard, so we would like to ensure that our clients are aware of all their obligations including those as for accountancy when setting up a company in this country, and can (with our assistance) run a compliant operation.

The basic Hungarian business taxes are the following:

• Local business tax: 2% on net revenues (meaning: your income minus any direct costs such as cost of goods or services that are re-sold)
• Corporate tax (also known as profit tax): 9%; applies to profits after the deduction of all expenses including direct and general expenses
• Dividend tax: he company’s profit after tax can be either saved for future activities or paid out to shareholders as dividend; in Hungary, dividend tax is 15% and there is an additional 13% health insurance contribution payable which is maximized in HUF 907,296 (ca. EUR 2,200) per year in 2025 – however, this only applies to Hungarian residents; in the case of non-local residents, specific bilateral agreements between Hungary and your country of residence may apply.
• VAT (value added tax, or also known as sales tax in some countries): usually  27% (depending on the product or service you sell). You will charge VAT only towards individual (retail) buyers or corporate EU-based buyers who are not registered for VAT, meaning that if you are an international trader, you may not charge VAT at all.

Invoices to buyers/clients can only be issued through licensed invoicing software. Invoices issued in Excel, foreign invoicing programs or other means are not acceptable in Hungary. We strongly recommend that you purchase a license for an invoicing software (license fee: approx. EUR 140/year) and learn to use this program through our assistance. This way, you’ll be able to issue invoices in Hungarian and English, in full compliance with the local regulations, and even in PDF format if you wish.

VAT is value added tax, also known as sales tax in some countries. In Hungary, VAT is usually 27%, and whenever you buy something in a shop for example, it is always already included in the price you see, so you do not have to start counting each time how much something will cost. When you start your company in Hungary (which will immediately receive an EU VAT number as well), and issue your own invoices towards your clients, you will charge VAT only towards individual (retail) buyers or corporate EU-based buyers who are not registered for VAT. However, if you are an international trader, you may not charge VAT at all.

• Submitting invoices and bank statements to the accountant: 5^th of each month
• Reporting sick leaves, salaries or bonuses: 1^st of each month
• Reporting any changes in the company’s operations (changes in ownership, owner’s or director’s personal data, bank accounts, activity, employees, etc.): within 5 working days

• Fiscal year closing / annual reports due: May 31^st for the previous fiscal year
• VAT declarations and payments: on the 20^th of each month, for the preceding month or quarter (depending on how often the company declares VAT)
• Payroll taxes & social contributions: on the 12^th of each month, for the preceding month
• Corporate tax advances: paid quarterly on the 20^th of July, October, January and April, in 4 equal installments, calculated on the basis of the previous closed fiscal year
• Local business tax advance: paid twice a year (15^th March and September)