Hungary plans two-tier corporate tax to boost budget contributions from large firms

Hungary's next fiscal year will see the corporate tax split into two brackets, with larger enterprises paying a higher rate while smaller ones remain at one outlet level. This change is part of a broader budget strategy that seeks greater contributions from energy firms, banks, insurers and retail chains to fund higher social benefits and achieve a 4.9 percent deficit goal, which could pave the way for euro adoption. Prime Minister Magyar Péter indicated that, after stabilising the budget, the overall tax framework will be reassessed.

The policy follows earlier reforms that introduced lower and upper tax brackets and adjusted rates over the past two decades. While the new structure aims to increase state revenues, officials stress that corporate tax is only one factor influencing the investment climate.