Transfer pricing in Hungary

Transfer pricing in Hungary at a glance

Regulation Type OECD
Are there specific transfer pricing regulations? Yes
Submission deadline CIT deadline
Submission deadline upon request Directly
Annual update required Yes
Official language requirements Hungarian, English, French, and German
Potential impact of penalties 50% penalty tax rate


Hungarian tax law

Rules for transfer pricing in Hungary are based upon:

  • corporate Income Tax Act Article 18 (transfer pricing rules), Article 4/23 (definition
of related parties) and Article 31/2 (reference to OECD transfer pricing guidelines);
  • tax Procedures Act Article 1 (8) on arm’s length principle, Article 132/B-C on APAs, Article 176/A on the application of the Arbitration Convention;
  • the Hungarian Ministry of Finance issued Decree no. 22/2009 on transfer pricing documentation requirements (modified as of 1 January, 2012, by the Ministry of National Economy Decree no. 54/2011 and further modified as of 18 June 2013 by the Ministry of National Economy Decree no. 20/2013);
  • the Hungarian Ministry of Finance issued Decree no. 38/2006 on APAs (also modified as of 1 January, 2012, by Ministry of National Economy Decree no. 54/2011);
  • VAT Act Article 67 (determination of tax base if consideration is not arm’s length);
  • modification of the Act on Accounting Article 47, 73, and 78, as of 30 June 2013, and
  • ruling 1999/103 on the possibility of unilateral adjustments performed by the tax authorities.


The Hungarian Corporate Income Tax Act refers to the OECD Guidelines. When there are no specific Hungarian transfer pricing regulations in place, the OECD Guidelines are the preliminary source for transfer pricing issues.


Accepted methods

Accepted methods are:

  • the comparable uncontrolled price method
  • the resale price method
  • the cost plus method
  • profit split method
  • the transactional net margin method

Priority of methods

According to Hungarian transfer pricing regulations, there is no priority of methods. Other methods than the methods shown above may be applied if the arm’s-length price cannot be supported by any of these methods.

Documentation requirements

Information that should be included in the documentation:

  • name, registered seat and tax number
  • content of agreements with related parties
  • industry analysis
  • used transfer pricing methods and the reasons for using this method
  • description of comparable services and transaction of goods
  • factors that could affect the arm’s length price
  • the arm’s length price
  • information on pricing agreements and court procedures
  • preparation and amendment date of documentation
  • if consolidated transfer pricing documentation is prepared


Transfer pricing documentation and supporting documentation may be compiled in languages other than Hungarian, but the taxpayer is liable to present a Hungarian translation of documentation prepared in languages other than English, French, and German, at the tax authorities’ request, by the deadline specified.

Requirements to prepare documentation annually

There are no specific rules under the Hungarian regulations regarding the annual updates; however, based on the general rules, the transfer pricing report must be updated if certain conditions have changed in the tested financial year, and those changes have an effect on the pricing mechanism. Furthermore, in a recent change, the Hungarian tax authorities prefer benchmark updates on a yearly basis.

Submission deadline upon request by tax authorities

Upon request, documentation has to be provided for immediately.

Advance Pricing Agreements


Since 2007 Advance Pricing Agreements (APA’s) can be obtained in Hungary.


Generally APA’s are obtained for five years, however, this period can be extended with an additional three years.


There are no specific transfer pricing penalties, meaning that ordinary tax penalties apply. | the global transfer pricing reference guide