What tax changes are current in 2025?
We have entered the year 2025, which means it is time to prepare for the current changes in the field of taxation. Some of the legislative amendments affecting taxation apply to sole proprietors, but there are also changes coming into effect that concern companies.
Let’s take a summarized look at what to expect in taxation in 2025!
Tax changes in 2025
It is worth reviewing the current updates that apply to companies, businesses, and sole proprietors this year. The following list provides a brief overview of the most important information, serving as a useful guide for those affected, without claiming to be complete.
-In the case of certain taxes and duties, the rates are increasing in line with current inflation. This applies, for example, to vehicles, including company cars, whose tax will rise by 20 percent. The tax rates on some energy products, tobacco products, and alcoholic beverages will also increase.
-The extra profit tax for pharmaceutical manufacturers, the special tax for pharmaceutical manufacturers, and the extra profit tax for pharmaceutical distributors will be abolished.
-Changes will affect flat-rate taxation, which responds to the change in the amount of the minimum wage. Flat-rate taxation can be applied by entrepreneurs with an annual income below HUF 34,896,000, and for retail activities below HUF 174,480,000. Sole proprietors remain tax-exempt if their annual income is below HUF 1,744,800 under flat-rate taxation.
-Sole proprietors using flat-rate taxation will find things simpler, as the new rules will make it much easier to apply the relevant calculations to their fixed-rate income.
-The number of companies required to undergo auditing will decrease, and the scope of costs and expenses incurred in the interest of the business will be expanded.
-The simplified entrepreneurial tax, known as EVA, will be discontinued, so those who previously fell under this category must choose another form of taxation starting this year.
-Unlike in previous years, in 2025, changes will be introduced regarding the environmental product fee.
-A new type of tax will be introduced, called the innovation contribution, which applies to companies engaged in innovative activities.
-The annual flat-rate tax payable for private accommodations will increase in certain cases.
-Among the taxpayers of the retail tax, so-called platform operators will also appear.
We would also like to draw attention to something that remains relevant every year: the personal income tax return, which applies to all employees. Meeting deadlines is of key importance in taxation. In 2025, tax returns must be completed by May 20, which can be done independently or with the help of a professional.
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