Government plans to broaden flat-rate tax and introduce wealth tax for high-value assets
State Secretary Attila Kövesdy said legislation is under way to expand flat-rate taxation and to launch a recurring wealth tax on assets exceeding one billion forints.
During a recent tax policy forum, Attila Kövesdy detailed the administration's tax agenda. He confirmed that a law to widen the flat-rate (katás) tax system is being prepared, while a draft for a recurring wealth tax on assets over one billion forints is expected to be released for public consultation within weeks. The proposed tax would cover corporate stakes, movable and immovable property, and apply equally to Hungarian and foreign owners.
Additional measures include a low-income income-tax credit slated for early 2027, a fall tax package with numerous technical adjustments, and continued digitalisation projects at the tax authority to reduce firms' paperwork. Kövesdy also hinted at forthcoming investigations into the wealth accumulation of current and former politicians, though the related legislation has not yet been published.
Why it matters
The reforms could reshape tax burdens for high-net-worth individuals and affect government revenue streams.
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