Hungary concentrates its annual compliance into one very busy date. For a calendar-year company, the annual report, the corporate income tax return and the local business tax return all fall on 31 May. Missing that cluster is the most common mistake. The rest of the year is a rhythm of monthly VAT and payroll reports and a few advance payments.

This guide covers the limited liability company (korlátolt felelősségű társaság, Kft.), the usual vehicle for a foreign-owned subsidiary, and notes where the company limited by shares (Zrt.) and a branch differ. It is written for founders and for legal, finance and operations teams.

Updated November 9, 2026. Hungarian tax rules change often, including surtaxes for particular sectors, so use the dates below as the usual pattern for a calendar-year company and confirm them with the tax authority (NAV) and the company registry.

Entity compliance Hungary: the quick answer

• Submit the annual report (beszámoló) electronically through the company registry system by 31 May for a calendar-year company, according to professional sources.

• File the corporate income tax return and pay the tax by 31 May, or within five months of the year-end for a non-calendar year.

• File the local business tax return and pay the balance by the same date, after advance payments on 15 March and 15 September.

• File VAT returns, which are due by the 20th for monthly filers, and payroll reports, and keep the company registry data current.

What determines a Hungarian company's compliance requirements?

The legal form, size and tax regime decide the work. Kft. and Zrt. companies submit financial statements to the registry, and a statutory audit is mandatory when the company passes certain thresholds, which professional sources give as average net sales of HUF 300 million or an average of more than 50 employees over two consecutive years. Smaller companies are not audited unless another rule applies.

The tax regime matters. Companies pay corporate income tax under the general regime, or they can opt into the small business tax (KIVA) if they meet conditions. Both have the same 31 May deadline, according to professional sources, but the base and the advance payment rules differ. Ask your accountant which regime applies.

Annual entity requirements in Hungary: the core checklist

1. Annual report

Companies prepare an annual report under the Accounting Act, usually with a balance sheet, a profit and loss account and notes, and submit it electronically through the e-beszámoló system run by the company information service. Professional sources give 31 May of the following year, and for foreign-owned branches six months after the fiscal year-end. If the report is in another language, a Hungarian translation may be required. Keep the shareholders' resolution that approves the report and the allocation of profit.

2. Corporate income tax return

Professional sources describe an annual return filed electronically and paid by 31 May of the year following the tax year, or within five months of the year-end where the financial year differs from the calendar year. The corporate income tax rate is 9 percent according to commonly published rates, and an alternative minimum tax base can apply when profit before tax or the tax base falls below a threshold. Advance payments are made during the year, with monthly payments for companies whose prior-year tax exceeded HUF 20 million, according to professional sources. Failure to pay can lead to a penalty of at least 50 percent of the underpaid tax in some cases, so confirm the exposure.

3. Local business tax

Municipalities levy a local business tax of up to 2 percent on adjusted net sales, according to professional sources. Advance payments are due on 15 March and 15 September, and the annual return and the balance are due on 31 May. The municipality where the company is registered or has a site determines the rate, so check each site.

4. Chamber membership and other annual payments

Professional sources mention an annual chamber of commerce membership fee due by 31 March, vehicle tax for companies that own cars, and other small taxes. Add them to the calendar.

5. Company registry and ownership data

Changes of managing directors, registered office, share capital and articles are filed with the court of registration through the electronic system, usually with a lawyer's countersignature. Hungary also keeps a beneficial owner register. Check the current rules with a local adviser.

Tax and indirect tax obligations

The standard VAT rate is 27 percent, based on commonly published rates, with reduced rates for some goods and services. Companies file VAT returns monthly, quarterly or annually depending on turnover, with a due date of the 20th for monthly filers according to professional sources. Hungary uses real-time invoice reporting to the tax authority, so the invoicing software must support it.

Employers pay a social contribution tax of 13 percent, according to professional sources, and employees' contributions are withheld. Dividends and interest paid abroad can attract withholding, which EU rules and treaties reduce when conditions are met. Related-party transactions need arm's-length pricing and documentation, and various surtaxes apply in selected sectors.

Foreign-owned subsidiaries

Foreign ownership of a Kft. is generally unrestricted, with screening for investments in strategic sectors. A Kft. needs a managing director, a registered office in Hungary and minimum share capital, which professional sources do not state in the material reviewed here, so confirm the current figure. Founding documents are signed with a lawyer, and foreign corporate shareholders provide apostilled documents with translations.

Banks apply due diligence to foreign-owned accounts. Intercompany loans, services and royalties need contracts, and thin capitalization and interest limits can restrict deductions. Companies with low effective taxation of foreign income should also review controlled foreign company rules.

First-year and event-triggered obligations

In the first year, the company is registered with the court of registration, receives its tax number, registers for VAT and payroll, joins the chamber, opens a bank account and sets up invoicing software. The first financial year can be shorter than twelve months.

Events that trigger filings include a change of managing director, a transfer of shares, a capital change, a move of the registered office, a merger and a liquidation. Each is filed through the registry, usually by a lawyer.

Employment and local requirements

Hungarian employers register employees with the tax authority before work starts, file monthly payroll returns and pay contributions. Employees have written contracts, annual leave that grows with age, and notice periods tied to service. Works councils appear once thresholds are met. Many foreign-owned subsidiaries use a local payroll provider.

Record-keeping and governance in Hungary

Hungarian companies keep accounting records and supporting documents for at least eight years under the Accounting Act, according to professional sources, so confirm the period with your accountant. The managing director is responsible for the books, and a foreign parent should know who signs the annual report and who holds the electronic credentials for the registry and tax portals. Keep the member's resolution on profit allocation and any dividend, because dividend payments depend on available reserves. Where the company is part of a group, align the financial year-end with the parent to reduce the cost of consolidation, but check the effect on the 31 May cluster.

Build a compliance calendar for Hungary

A compliance calendar turns the rules above into dated tasks with named owners. Start from the financial year-end and the incorporation anniversary, then add the recurring monthly and quarterly items. Review it each quarter, because deadlines, extensions and registry systems change.

• 15 March: first advance payment of the local business tax.

• 31 March: chamber of commerce membership fee.

• By 31 May: submit the annual report and file the corporate tax and local business tax returns.

• 15 September: second advance payment of the local business tax.

• Throughout the year: advance corporate tax payments and monthly or quarterly VAT.

• Monthly: payroll returns and contributions.

Common mistakes

• Treating 31 May as only one deadline when it covers several filings.

• Choosing the tax regime without checking the KIVA conditions.

• Forgetting the local business tax advance payments.

• Filing a foreign-language annual report without a Hungarian translation.

• Ignoring real-time invoice reporting.

• Missing the chamber fee.

Entity compliance Hungary: frequently asked questions

When is the Hungarian annual report due?

31 May of the following year for a calendar-year company, according to professional sources.

When is the corporate income tax return due?

31 May, or within five months of year-end for a non-calendar year.

What is the corporate tax rate?

9 percent, based on commonly published rates.

What is the local business tax?

A municipal tax of up to 2 percent on adjusted net sales, with advances on 15 March and 15 September.

Is an audit required?

When the company passes the size thresholds, which professional sources give as HUF 300 million in sales or more than 50 employees.

What is the VAT rate?

27 percent, with reduced rates for some supplies.

How CoverPin can help

CoverPin helps finance, legal and operations teams track entity obligations across countries. See our international entities overview, learn about compliance advisory, or browse more guides in our legal and compliance resources.

This article is general information, not legal, tax or accounting advice. Confirm current requirements with the relevant authority or a qualified local adviser before acting.