The advertising tax will be reintroduced from January 2027

The Hungarian government has proposed a new advertising tax set to be reintroduced in January 2027, with a progressive structure based on revenue brackets. The tax will generate an estimated 14 billion HUF, with rates of 2.5%, 4.5%, and 7.5% for different revenue ranges. Businesses earning less than 500 million HUF will be exempt. This shift from a fixed rate of 3.75% aims to alleviate the burden on smaller media entities while increasing costs for larger global players. Concerns have been raised about the enforcement of this tax on international companies, which dominate a significant portion of the advertising market in Hungary. The Hungarian Advertising Association previously criticized the introduction of the tax, emphasizing that local companies already contribute through various taxes.