Hungarian Gazette 2026/12
Summary
The government decree, in the exercise of emergency legislative powers, introduces tax reliefs improving the competitiveness of the hospitality sector in order to counterbalance the economic effects of the Russian-Ukrainian conflict. The value of restaurant representation benefits not exceeding 1 percent of total annual revenue, but not more than 100 million forints, shall be exempt from personal income tax and social contribution tax payable on restaurant representation benefits, and furthermore the rate of the tourism development contribution shall be reduced to 2 percent with respect to restaurant services. In addition, the decree provides a tax exemption for the representation and business
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HUNGARIAN GAZETTE · Issue 12 of 2026
III. Government Decrees
Government Decree No. 10/2026. (I. 30.) on measures to improve the competitiveness of restaurants
[1] The ongoing Russian-Ukrainian conflict has been exerting a negative impact on the domestic economy for years, and in order to counterbalance this, it is necessary to increase the competitiveness of the hospitality sector.
[2] Tourism is a strategic sector of the national economy, which contributes significantly to the performance of the Hungarian economy, and thus plays a prominent role in stimulating economic growth. Within the tourism sector, hospitality also plays an important role, being a vital industry both from the perspective of domestic consumption and foreign visitors.
[3] The purpose of the decree is to introduce measures supporting the hospitality sector. As a result of the measures, the portion of income (value of the benefit) determined on the basis of representation benefits provided in the form of restaurant hospitality (food, beverages) that does not exceed 1 percent of the total annual revenue recognised in the tax year, but not more than 100 million forints, shall be exempt from the payment of public dues, and furthermore the rate of the tourism development contribution payable on services related to restaurant hospitality shall be reduced to 2 percent.…