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Hungary – Changes to the Economic Activity Classification in 2025
Hungary is implementing a significant change in how businesses classify their economic activities. The new NACE 25 system will replace the current NACE’08 classification, aligning with European Union requirements. This transition affects all Hungarian companies with a tax number.
What is NACE?
NACE (Nomenclature of Economic Activities) is the European Union’s standardized classification system for business activities. It provides a framework for collecting and presenting statistical data according to economic activity in fields such as economics, employment, and production.
Authority Responsibilities
Two key authorities will manage this transition in Hungary:
- The Central Statistical Office will automatically convert main activity codes
- The National Tax Authority will handle the review of side activity codes
Required Actions for Companies
Main Activity Codes:
Companies that accept their newly assigned codes will need to update their corporate documents during their next routine corporate change and filings with the Court of Registration. The authorities will automatically update their registries.
However, if a business disagrees with its assigned codes, it must select appropriate alternatives and report these changes to the Tax Authority through an accountant by the 1st of July 2025.
For Side Activity Codes:
All businesses must review their automatically converted side activity codes. Any necessary changes must be reported to the Tax Authority via an accountant the 1st of July 2025. It’s important to note that any unconverted old activity codes will be automatically deleted from the system on the 31st of August 2025.
Documentation Updates
The transition requires updates to several important corporate document including:
- Company’s Deed of foundation
- Articles of association
- Tax Authority registrations
- Court of Registration records
All modifications should accurately reflect the company’s current business activities.
The Risks of Non-Compliance
While there are no direct penalties for non-compliance, companies should note:
- Incorrect classifications may affect ability to invoice certain services
- New codes must accurately reflect current business activities
How Mercator® by Citco Can Help
Our team is ready to guide your company through this important transition with comprehensive support services. We can help to:
- Review your converted activity codes in detail
- Select and verify appropriate classifications
- Update all necessary documentation
- Navigate corporate filing requirements
- Ensure compliance with new regulations
- Manage the entire transition process
Contact us at mercator@citco.com.
