Hungarian government proposes new corporate tax tier and higher innovation levy

During an October address, Prime Minister Magyar Péter outlined a plan to add a higher corporate tax rate for the biggest companies, creating a second bracket that will increase the overall tax load. Finance Minister Kármán András added that the innovation levy will be lifted by a few tenths of a percentage point, targeting firms with sizable revenues and workforces. Together, the changes are projected to bring in roughly two hundred to three hundred billion forints in additional revenue.

The government also indicated it will tighten other tax provisions and reduce some existing deductions, especially those linked to research and development. These steps are intended to address the relatively low corporate tax share of GDP and to compensate for the removal of sector-specific taxes. The reforms aim to create a more balanced fiscal contribution from the corporate sector.