Information on the tax and labor law changes effective from July 1, 2025

Dear Client,

We would like to draw your attention to the most important tax and labor law changes taking effect from July 1, 2025, and in the following period. These updates may affect both businesses and private individuals. Please consider the following changes in your long-term planning!

💡 Key changes effective from July 1, 2025

👶 CSED, GYED, and Adoption Allowance – Tax Exemption
- Infant Care Benefit (CSED)
- Child Care Benefit (GYED)
- Adoption Allowance

👨‍👩‍👧 Increase in Family Tax Allowance – up to 50%
- 1 child: HUF 15,000/month
- 2 children: HUF 30,000/child/month
- 3 or more children: HUF 49,500/child/month
- For children with long-term illness or disability: HUF 15,000/month
⚠️ Note: The adjustment will apply automatically, but a new declaration is required if a fixed amount was previously specified.

🧾 Receipt Issuance Rules – Postponed
The new regulations will enter into force on September 1, 2026. Businesses that still use manual receipts should start preparing in advance.

👷 Simplified Employment (EFO) – New Rules
- Annual limit of 120 days per employee introduced
- Applies cumulatively across multiple employers
- The 90-day limit per employer remains unchanged
- Monitoring tools: NAV Mobile App and ONYA system

💼 Social Contribution Tax (Szocho) Support – Available Only in July!
- Application period: July 1–31, 2025
- Application platform: Magyarorszag.hu – Szocho Support
- Conditions: employee must have worked at least one day between Sept 1 and Nov 15, 2024, on minimum wage and without other wage subsidies
- Amount: max. HUF 37,459/person/year
⚠️ Eligibility for KIVA companies is currently under review.

🔮 Looking Ahead: What to Expect from Autumn 2025 and 2026
- “Extra profit” taxes to become permanent (banks, insurance, oil sector)
- Bank tax increase: 7% → 8%, and 18% → 20%
- Corporate tax (TAO) relief expanded: R&D cap raised to HUF 150 million
- Personal income tax (PIT) exemption extended:
- Mothers with three or more children: from Oct 1, 2025
- Mothers with two children: from Jan 1, 2026
- Social tax relief restricted for retired women: from 2026
- VAT changes: manual receipts, small business exemption, EU transactions
- Exemption from duties for green energy investments
- New financial transaction tax: to include e-money accounts
- Global minimum tax: new deadlines, updated accounting standards
- ESG reporting requirement: postponed to 2027
- NAV audits extended in chain transactions
- Local business tax (HIPA) exemption for GPs and health visitors — municipal discretion

Summary
From July 1, 2025, favorable changes will take effect for families (tax-exempt benefits, increased family allowances).
Major changes affecting businesses are expected from 2026, so it’s worth preparing early.

📌 Have questions?
Our accounting and payroll experts are ready to assist with understanding and implementing the changes.

📩 Get in touch with us!

Best regards,
Balance Kft
Accounting and Payroll Team
📧 Email: info@balancekft.hu
📞 Phone: +36 70 596 4948
🌐 Web: www.balancekft.hu