Year-End Tax Decisions 2025/2026: Choosing Group Corporate Taxation and Reviewing Key Deadlines for Businesses

Deadline for opting for group corporate taxation

For corporate groups, opting for group corporate taxation can offer numerous advantages. Applications to establish a new tax group or to join an existing one for the 2026 tax year may be submitted between 1–20 November 2025.

Group taxation in corporate income tax may be established by related companies with the approval of the Hungarian Tax Authority (NAV). The application must be jointly submitted in writing by all prospective group members.

Key benefits of group corporate taxation

• Loss utilization: Losses may be shared within the group, reducing the overall tax burden.
• Tax incentives: Tax benefits, especially investment tax credits, can be utilized more effectively.
• Reduced administration: Transfer pricing documentation is required only at the group level, minimizing administrative tasks.

If you want to know what benefits group taxation could bring to your companies, contact the experts at LeitnerLeitner. We will design the corporate group structure and taxation and submit the application. If necessary, we also assist in resolving issues related to existing groups.

Conditions for group corporate taxation

• A minimum 75% ownership link must exist between the group members.
• All members must have the same balance sheet date.
• Books must be kept in the same currency.
• The group must prepare its financial statements jointly, following either Hungarian accounting rules or IFRS.

How group corporate taxation works

• The group is represented before the tax authority by a group representative, who holds a group tax ID number.
• Both the group representative and the group members must register with the tax authority.
• There is no limit to the number of members within a group.
• A taxpayer can only be a member of one group at a time.
• A new member can join an existing group if the group representative and the new member jointly submit an application.
• Each member must still calculate its own tax liability and send a declaration equivalent to a tax return to both the tax authority and the group representative.
• The group tax return is prepared by the group representative based on the consolidated data.
• The group representative maintains records of all details of the group’s tax calculations.

Glossary – Group Corporate Taxation and Year-End Decisions 2025/2026

• Group Corporate Taxation
  A tax regime in which multiple related companies are treated as a single taxpayer for corporate income tax purposes. It allows loss sharing and tax optimization at the group level.
• Group Taxpayer
  The collection of companies participating in group taxation with the approval of the tax authority, filing jointly through a designated representative.
• Group Representative
  The company appointed to represent the group before the tax authority, responsible for filing the group’s tax return and maintaining internal records.
• Related Company
  Companies with at least 75% ownership connection, a key condition for establishing a group taxpayer.
• Deadline for Group Taxation Application
  For the 2026 tax year, applications must be submitted between 1–20 November 2025, jointly by all future group members to the Hungarian Tax Authority (NAV).
• Loss Sharing
  A group taxation benefit that allows one member’s loss to offset another member’s profit, optimizing total tax payable.
• Investment Tax Allowance
  A tax reduction encouraging corporate investment and development, more easily utilized within group taxation.
• Transfer Pricing Documentation
  A mandatory record of related-party transactions. Under group taxation, it is required only at the group level, significantly reducing administrative work.
• Balance Sheet Date
  The end date of the reporting period, which must be identical across all group members.
• Bookkeeping Currency
  The currency in which the company maintains its books (e.g. HUF, EUR). Group members must use the same currency.
• IFRS (International Financial Reporting Standards)
  A global set of accounting standards that group members may use for preparing joint financial statements.
• NAV (National Tax and Customs Administration of Hungary)
  The Hungarian tax authority to which applications for establishing or joining a group taxpayer must be submitted.
• LeitnerLeitner Tax Advisory Services
  LeitnerLeitner provides comprehensive tax advisory services for companies, focusing on year-end tax planning decisions such as group corporate taxation, tax optimization, transfer pricing compliance, and corporate income tax strategy.
  Our experts ensure legally compliant and financially efficient tax management, both in Hungary and across international markets.