Hungarian corporate income tax advances in 2026: reduction opportunities and key deadlines
09/2026
- BPiON
Several changes to the Hungarian corporate income tax (CIT) advance payment rules apply in 2026. The threshold for quarterly advance payments has increased significantly, while the payment deadline for the final quarterly advance has been brought forward.
Companies whose expected 2026 CIT liability is lower than their previously declared tax advances should also consider whether a reduction of their CIT advances may be available.
When can a CIT advance be reduced?
Under the Hungarian Rules of Taxation, taxpayers may request the reduction of their declared tax advances if, based on their calculations, their expected tax liability will be lower than the amount of advances determined on the basis of the previous period.
The reduction does not constitute a tax allowance. Rather, it allows advance payments to be aligned more closely with the company’s expected annual CIT liability.
This may provide an important cash-flow benefit, particularly for companies whose profitability has decreased compared to the previous year.
20 October – an important deadline for quarterly taxpayers
For calendar-year taxpayers subject to quarterly CIT advance payments, the advance for the third quarter of 2026 is due on 20 October 2026.
If a company intends to request a reduction of this advance, the application must be submitted by the due date of the relevant advance payment.
Companies should therefore consider reviewing their expected 2026 results and CIT position before the October deadline.
Quarterly payment threshold increased to HUF 20 million
From 2026, the threshold determining monthly versus quarterly CIT advance payments has increased from HUF 5 million to HUF 20 million.
As a general rule:
- taxpayers whose CIT liability for the previous tax year exceeds HUF 20 million are required to make monthly advance payments;
- taxpayers whose liability does not exceed HUF 20 million make quarterly advance payments.
The new threshold applies for the first time to advances determined on the basis of the 2025 tax liability and declared in 2026. For calendar-year taxpayers, the impact of the change generally starts with the advance payment period beginning on 1 July 2026.
The final quarterly advance is now due in December
Another important change applies to the final quarterly CIT advance.
From 2026, calendar-year taxpayers subject to quarterly advance payments must pay their fourth-quarter advance in December instead of January of the following year.
The change should also be considered for year-end cash-flow planning, as the fourth-quarter advance now impacts companies’ liquidity before year-end.
What should be reviewed before requesting a reduction?
A reduction is not automatic and should be supported by a reasonable estimate of the company’s expected annual CIT liability.
The review should generally take into account:
- current general ledger figures and expected profit before tax;
- projected revenues and expenses for the remainder of the year;
- expected CIT base adjustments;
- available tax allowances and incentives;
- CIT advances already paid and still outstanding; and
- significant one-off transactions expected before year-end.
A properly documented annual CIT calculation should therefore be prepared before submitting the application.
How can the application be submitted?
Applications for the reduction of tax advances can be submitted to the Hungarian Tax Authority (NAV) electronically using the ELOLEGMOD form.
The form is also available through NAV’s Online Form Filling Application (ONYA).
Recommended next steps
Companies whose expected 2026 profitability is materially lower than in the previous year should consider reviewing their annual CIT position before the October advance payment deadline.
A review may be particularly relevant where revenues or profitability have decreased significantly, substantial one-off expenses have arisen, the company expects to incur a loss, or available tax base reductions or tax incentives are expected to materially decrease its 2026 CIT liability.
A timely and properly supported reduction request can help avoid financing CIT advances that significantly exceed the company’s expected annual tax liability.
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