Share

New Tax and Benefits Introduced in Support of Families


The National Assembly has approved new tax amendments, introducing a range of measures designed to support economic growth and help families. One of the key changes is the increase in the tax allowance for families with children, that will rise in two stages.

Starting from July 1, 2025, the tax allowance per child will increase by 50%, and another 50% increase will take effect from January 1, 2026. By 2026, families with one child will receive HUF 133,340 (EUR 357) per month, those with two children will receive HUF 266,660 (EUR 715), and families with three or more children will be entitled to HUF 440,000 (EUR 1,176) per month. The new rules also introduce inflation-linked increases for several taxes, including excise duties and company car taxes, starting in 2025. Taxes on retail sales will be extended to include businesses using platforms for domestic retail sales.

In addition to tax changes, the government has decided to extend the reduced VAT (Value Added Tax) rate of 5% for new residential properties until 2026, and this rate will apply to ongoing construction projects until 2030.

The implementation of e-sales, originally scheduled for January 2025, has been postponed until July 2025 to give businesses more time to prepare.

Changes to benefits include the ability for employers to use 50% of the SZÉP card (employee incentive and benefits card) subsidy for home renovations. Additionally, a new “Active Hungarians” category will allow employers to offer HUF 10,000 (EUR 27) per month to encourage an active lifestyle.

Fringe benefits for employees under 35 will also rise, with up to HUF 1.8M (EUR 4,800) available per year.

These changes are aimed at strengthening family support, adjusting to inflation, and improving the quality of life for Hungarian citizens. By linking tax adjustments to inflation and expanding benefits, the government aims to foster a more resilient economy while addressing the needs of families and workers.

Related article

Government Introduces Financial Support for Young Parents in Higher Education

Government Introduces Financial Support for Young Parents in Higher Education

Under an amendment passed this week, eligible students will no longer have to pay tuition fees.Continue reading

Via MTI; Featured Image: Pixabay





Source link