Per Diem

Hungarian law takes a practical approach to business travel compensation, rooted in Section 51(2) of the Labor Code. This framework ensures fair reimbursement while maintaining clear tax implications.

Domestic Travel Rules:

1. Core Allowance Structure:

• Minimum daily rate: HUF 500
• Tax implications vary by payment method
• Two reimbursement options available

2. Time-Based Requirements:

• Minimum 6-hour trip duration
• No allowance if meals provided
• Daily calculations based on actual travel time

Special Transport Sector Rates:

• Drivers: HUF 9,000 daily
• Cargo attendants: HUF 9,000 daily
• Effective since March 30, 2023

International Travel Framework:

Mileage

Hungary employs a straightforward yet comprehensive approach to vehicle expense reimbursement, covering both business travel and daily commuting needs. Recent updates have refined these provisions to better reflect current costs.

Business Journey Rates:

• Standard reimbursement: HUF 15 per kilometer
• Tax-free when properly documented
• Applies to personal vehicles used for business
• Must maintain detailed travel logs

Commuting Allowances:

Documentation Requirements:

• Journey purpose records
• Odometer readings
• Date and time logs
• Business destination details
• Vehicle registration information

Recent Changes:

• Updated rates effective January 28, 2023
• Enhanced cross-border provisions
• Refined documentation standards

Paperless

Hungarian law embraces modern record-keeping while maintaining strict standards for authenticity and accessibility. The framework balances digital efficiency with compliance needs.

Core Requirements:

• 8-year retention period
• Immediate retrieval capability
• Unaltered content preservation
• Clear audit trail maintenance

Digital Conversion Standards:

1. Content Verification:

• Image-to-original matching
• Modification detection systems
• Authentication clauses required

2. Technical Specifications:

• Resolution requirements for scanning
• Format standards for storage
• Backup system mandates

Authentication Process:

• “Identical to original” clause required
• Electronic signature or stamp needed
• Timestamp requirements when applicable
• Procedural documentation maintained

Based on Section 169 of the Hungarian Accounting Act, these requirements ensure both legal compliance and practical usability.

Practical Implementation:

• Regular system audits
• Staff training requirements
• Process documentation
• Quality control measures

For detailed technical specifications, refer to Government Decree 451/2016, Chapter III.

Meals, Benefits & Allowances

In Hungary, as of 2025, business travel meal allowances, benefits, and per diem regulations are governed by the Hungarian tax authority (NAV). The key points include:

1. Per Diem Rates: Hungary follows EU regulations on per diem allowances for business travel. The daily meal allowance for domestic travel is based on official NAV guidelines, and the per diem for international travel is determined by the destination country.
2. Tax Treatment of Allowances: Employers can provide tax-free daily allowances up to a certain limit. If the per diem exceeds the statutory amount, the excess is subject to income tax and social security contributions.
3. Meal Reimbursements: Employees on business trips can receive reimbursements for meals, but if they are already provided meals (e.g., included in hotel stays or conference fees), the per diem allowance may be reduced accordingly.
4. Social Security and Taxation Considerations: Employers must withhold social security contributions (18.5%) and ensure compliance with personal income tax (Szja tv.) regulations when providing allowances that exceed tax-free thresholds​
   nav.gov.hu
5. Reporting Requirements: Employers are responsible for reporting travel-related benefits to the Hungarian tax authority (NAV), ensuring that any taxable portion of allowances is properly accounted for​
   nav.gov.hu

For specific reimbursement rates and per diem limits applicable in 2025, it is best to consult the latest NAV publications or check with local tax professionals.

Sales tax rates

Hungary employs one of Europe’s most distinctive value-added tax structures, known locally as Hozzáadottérték-adó (HÉA). The system uses four rates to balance economic priorities with consumer needs.

Standard Rate (27%):

• Highest in the European Union
• Applies to most goods and services
• Main revenue generator for state budget

First Reduced Rate (18%):

• Select food products including dairy
• Public music performances
• Dance events and concerts
• Certain entertainment services

Second Reduced Rate (5%):

• Essential medicines and pharmaceuticals
• Select food staples:
  • Poultry products
  • Fresh eggs
  • Basic food items
• Books and publishing materials
• Hotel accommodation
• Restaurant meals and catering services

Zero Rate:

• Daily newspapers
• Cross-border transport services
• International shipments
• Specific EU transactions

Key Changes for 2025:

• Updated thresholds maintained
• Existing rates reconfirmed
• Special provisions for digital services

Government Links

1. https://njt.hu/jogszabaly/2015-437-20-22
2. https://magyarkozlony.hu/dokumentumok/77fba15b9f72d0cfe835caca17081d63a32201c4/megtekintes
3. https://nav.gov.hu/pfile/file?path=/ugyfeliranytu/nezzen-utana/inf_fuz/2023/08.-informacios-fuzet—a-gepjarmuvek-uzemeltetesevel-kapcsolatos-koltsegek-elszamolasa (nav doc PDF)