This is the final article in our series covering key rules of corporate taxation in Hungary. After exploring general and special provisions of the tax system, we now turn to penalties and Late Payment Surcharges in 2025.
1. Sanctions for Non-Compliance
Hungary’s tax system emphasizes voluntary compliance, but failure to meet tax obligations may lead to significant penalties, including:
- Administrative fines
- Late payment surcharges
- Tax shortfall penalties
- Criminal liability in extreme cases
2. Taxpayer Classification in 2025
The Hungarian Tax Authority (NAV) classifies taxpayers into three categories:
- Reliable taxpayer: Lenient rules and faster procedures
- Standard taxpayer: Subject to regular rules
- High-risk taxpayer: Stricter supervision and harsher penalties
Taxpayer status is reviewed quarterly and communicated through Hungary’s official e-government platform (Ügyfélkapu).
3. Common Tax Penalties in Hungary (2025)
- Delayed Taxpayer Registration or Notification
Fines based on the delay duration:- Up to 15 days: 5%
- 15-30 days: 20%
- Over 30 days: 30%
- Maximum fine: HUF 100,000
- Incorrect Tax Returns
Penalty of 5% of the difference between the correct and incorrect amount, with:- Minimum fine: HUF 5,000
- Maximum fine: HUF 100,000
- Underpayment and Year-End Top-Up
If advance payments fall short, a 20% surcharge applies to the shortfall. - Non-Payment or Late Payment of Tax Advances
A 50% penalty interest applies, in addition to default interest, for failure to pay tax advances on time. - Unreported Business Activities
First violation: Fine up to HUF 100,000
Repeated violation: Fine up to double the previous fine - Late Payment Interest
A surcharge equal to twice the base interest rate of the Hungarian National Bank applies.
4. Mitigation of Penalties in 2025
The NAV may reduce or waive penalties, especially when the taxpayer demonstrates reasonable care in fulfilling their obligations.
Conclusion:
Hungarian corporate tax law imposes strict penalties in 2025 for non-compliance, but taxpayers acting in good faith can still seek relief through voluntary compliance and penalty mitigation.
For legal assistance with tax disputes, NAV audits, or penalty mitigation, reach out to us.
Dr. Katona Géza, LL.M. ügyvéd (Rechtsanwalt / attorney at law)
Katona és Társai Ügyvédi Társulás
(Katona & Partner Rechtsanwaltssozietät / Attorneys’ Association)
H-106 Budapest, Tündérfürt utca 4.
Tel.: +36 1 225 25 30
Mobil: +36 70 344 0388
Fax: +36 1 700 27 57
[g.katona@katonalaw.com](mailto:g.katona@katonalaw.com)