The Ministry for National Economy has issued two new decrees setting out detailed implementing rules for the application of exemptions under the global minimum tax (Pillar Two), as well as for the related registration, filing and payment obligations in Hungary.

• The Hungarian Official Gazette dated 19 December 2025 published Decree No. 38/2025 of the Ministry for National Economy on the detailed rules governing tax exemptions related to the determination of top-up taxes ensuring the global minimum tax level. These rules entered into force on 19 January 2026 and apply to top-up tax liabilities for tax years starting in 2025 (and may be applied to tax years starting in 2024 at the taxpayer’s option).
• The purpose of the decree is to introduce detailed implementation rules for the application of exemptions available under the global minimum tax, ensuring that such exemptions are no longer regulated solely through general references to the OECD Model Rules but are instead embedded directly into domestic legislation.
• For the purposes of the decree, several key concepts are defined. These include, among others, the notion of a deduction without inclusion, which covers intra-group financing or investment arrangements where a cost or expense recognised by one group entity does not give rise to a corresponding amount of income or taxable profit for another group entity. The decree also defines cases of double tax credit and double deduction, with the objective of preventing multiple group entities from taking the same corporate income tax expense into account when calculating covered taxes or the simplified effective tax rate, and of preventing the same cost, expense or loss from being recognised by more than one group entity in financial statements.
• The decree further introduces the definition of a non-material group entity. Subject to certain conditions, this refers to a group entity that has been excluded from, or not fully consolidated line by line into, the consolidated financial statements due to its size or materiality. For group entities with revenue exceeding EUR 50 million, an additional condition is that their country-by-country reporting (CbCR) data must be prepared in accordance with an accepted or permitted financial reporting standard. The decree also defines concepts relating to such entities, including revenue, profit and adjusted covered taxes, as well as the notions of net unrealised fair value loss and nominal corporate income tax rate, which serve as the basis for the application of exemptions and calculations under the global minimum tax.
• The decree specifies that the transitional exemption based on country-by-country reporting may be applied for tax years beginning on or before 31 December 2026 and ending before 30 June 2028. Accordingly, exemptions from the payment of top-up taxes and from calculating the effective tax rate under the global minimum tax are available only during this period. Importantly, the election to apply the exemption must be made annually, within the statutory deadline, which as a general rule is within 15 months following the last day of the tax year concerned.
• If a group does not apply the exemption based on country-by-country reporting, it must subsequently determine its global minimum tax liability by way of self-revision, applying the detailed tax base calculation rules.
• The decree also addresses cases where the exemption based on country-by-country reporting is not available, such as where a group subject to the global minimum tax did not apply the exemption in the first year in which a top-up tax liability arose, or where the conditions for the exemption were not met in the group’s first tax year relevant for global minimum tax purposes.
• The exemption may only be applied on the basis of a country-by-country report that qualifies as an “accepted country-by-country report” in the relevant jurisdiction. When applying the exemption, the total revenue and profit before tax reported in the accepted country-by-country report, as well as the current-year tax expense shown in the accepted financial statements (including deferred tax expense), must be used, without applying the adjustment items otherwise required under the global minimum tax rules.
• Nevertheless, certain items carrying tax avoidance risks must be excluded from profit before tax and tax expense. These include, for example, significant net unrealised fair value losses exceeding EUR 50 million, impairment or depreciation of goodwill arising from acquisitions after 30 November 2021, as well as costs or expenses arising from deduction without inclusion or double deduction arrangements, and corporate income tax expenses arising from double tax credit arrangements, where the relevant transaction occurred after 18 December 2023.
• Groups that are not required to prepare a country-by-country report may apply the exemption based on an accepted country-by-country report that they would have prepared had such reporting been required.
• Where the profit before tax shown in the accepted country-by-country report is zero or negative, the reporting group entity may automatically treat the top-up tax payable by the group as zero.
• At the election of the reporting group entity, an exemption related to the recognised domestic top-up tax may be applied in respect of all jurisdictions officially approved by the OECD as applying a qualified domestic minimum top-up tax. The Hungarian Tax Authority must publish the list of such jurisdictions by the end of February each year. However, the decree lists exceptions where a Hungarian-resident parent entity may not elect this exemption, for example in the case of transparent entities or investment entities that are not subject to the domestic top-up tax in their jurisdiction of residence.
• The reporting group entity may also elect annually to treat the top-up tax liability of a non-material group entity as zero. This election must be made separately for each non-material group entity in accordance with the applicable reporting rules. The exemption is subject to conditions such as the group’s average recognised revenue and profit in the relevant jurisdiction, or an effective tax rate of at least 15%. It is important to note that fulfilling reporting obligations based on country-by-country reporting data does not exempt non-material group entities from reporting obligations as such.
• The decree also addresses exemptions from the undertaxed profits rule (UTPR). This is likewise a transitional exemption that may be elected annually for a given jurisdiction if the nominal corporate income tax rate in the jurisdiction of the ultimate parent entity is at least 20%. The exemption is time-limited and applies only to tax years of up to 12 months that begin on or before 31 December 2025 and end before 31 December 2026. Where a group is simultaneously eligible for the UTPR exemption and the country-by-country reporting-based transitional exemption in a given jurisdiction, it must choose between the two. If the group elects the UTPR exemption, it may not subsequently switch to the country-by-country reporting-based exemption for that jurisdiction.

• The Hungarian Official Gazette dated 26 January 2026 published Decree No. 4/2026 of the Ministry for National Economy, which introduces implementing rules relating to notifications, tax returns and tax payments under the global minimum tax. These rules enter into force on the 31st day following promulgation and apply to top-up tax liabilities for tax years starting in 2025 (and may be applied to tax years starting in 2024 at the taxpayer’s option).
• This decree sets out in detail the data content required for registration to be submitted to the Hungarian Tax Authority by groups subject to the global minimum tax. It also regulates the method of the registration, under which a designated local entity may submit a single notification on behalf of all Hungarian group entities. In the absence of such a designated local entity, each group entity must submit a separate notification and declare the number of Hungarian group entities and joint ventures.
• Any changes to previously reported data must be corrected by the deadline for submitting the next advance tax return or tax return. Where the designated local entity changes, the correction must be submitted within 90 days of the change or, at the latest, by the deadline for the next advance tax return or tax return.
• The decree further specifies the required content of advance domestic top-up tax returns to be submitted to the Hungarian Tax Authority. As a simplification, where the amount of the domestic top-up tax advance is zero because the effective tax rate exceeds 15%, no separate exemption justification is required to be indicated in the return. The indication of an exemption in the advance tax return does not qualify as an election under the global minimum tax framework.
• Where a designated local entity previously fulfilled the registration obligation, that entity must also submit the advance tax return on behalf of the affected Hungarian group entities.
• Finally, the new provisions also define the data content of tax returns relating to the different types of top-up taxes payable by global minimum tax taxpayers (QDMTT, IIR and UTPR). In such cases, if a designated local entity previously submitted the registration, it is likewise required to submit the tax returns on behalf of the Hungarian group entities.
• If the advance or final domestic top-up tax returns are prepared in US dollars or euros, the tax liability must be converted into Hungarian forints using the exchange rate published by the Hungarian National Bank on the first day of the month in which the return is submitted (or the most recently published rate if no rate is available on that day). Payment may be made either in the currency of the return or in forints; where the return is prepared in forints, payment must be made exclusively in forints. Where a designated local entity submits the return, the advance tax liabilities of the individual group entities must be declared and paid in the same currency and are recorded on the tax account of the designated local entity. The decree also includes detailed provisions on the technical execution of foreign currency payments and the treatment of exchange rate differences.