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Audit of a Hungarian company, financial statements, accounting, consulting in Hungary

Hungary, a country in Central Europe and a member of the European Union, attracts foreign investors with its economic stability, the possibility of electronic company registration, low company maintenance costs compared to neighbouring European countries, the lowest income tax in Europe (less than 10%) and no tax on dividends received. Financial statements can be presented in a simplified form, provided certain criteria are met.

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Service packages Legislation Tax System Audit Services
Preparation and submission of dormant accounts (for a dormant company), audit
from 820 EUR
Preparation and submission of non-dormant accounts (for an active company), audit
2 500 EUR
Apostille of financial statements (if necessary)
from 365 EUR

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General requirements

Hungarian companies must annually file financial statements and an annual report with the Ministry of Public Administration and Justice in electronic form. Financial statements are available to the public at the ministry’s website. Financial statements can be in forints, euros or US dollars in accordance with the Hungarian generally accepted accounting principles, which are similar to international accounting standards.

In Hungary, each company must file an annual report besides financial statements.

An annual report can be full, simplified or consolidated. Companies can prepare a more detailed report than required.

A simplified report is allowed for companies whose total assets do not exceed 1 200 000 000 HUF, turnover is not more than 2 400 000 000 HUF and number of employees is under 50 during 2 straight years.

Companies that do not meet these criteria must prepare a full report. Special rules apply to financial institutions and insurance companies.

Time frame for preparation and submission of financial statements

Financial year coincides with calendar year with some exceptions. Financial year can be different from calendar year, for example, for branches of foreign companies provided that it coincides with the foreign company’s financial year. Financial year lasts 12 months with some exceptions.

The management of a company must prepare an annual report within 150 days after the end of the financial year (180 days in the case of a consolidated report). An annual report must include a balance sheet, income statement and notes to financial statements.

Liability for late filing of accounts

If a company does not comply with the obligation to publish and file documents, it can be imposed with a fine of up to 500 000 HUF (~ 1 600 EUR). After the deadline for filing accounts, the National Tax and Customs Administration sends the company an official penalty notice giving an additional 30 days for filing accounts.

If the company violates and does not file accounts within the provided additional period, the National Tax and Customs Administration sends the company the second official notice giving 60 more days for fulfilment of unfulfilled obligations and concurrently charging a penalty of up to 1 000 000 HUF (~ 3 200 EUR).

If the company has not published its report by the expiration of the second additional period, the National Tax and Customs Administration deletes the tax number and initiates the procedure of pronouncing the company “terminated”.

Consolidated accounts

Besides standalone financial statements, companies that make up a group of companies must prepare a consolidated report if two of the following criteria are exceeded for 2 straight years:

  • total unconsolidated aggregate assets of the group are 6 000 000 000 HUF;
  • total unconsolidated annual net sales revenue is 12 000 000 000 HUF;
  • average annual number of employees of the group is 250.

Banks, financial institutions, insurance companies and listed companies must make consolidated financial statements and present them to state authorities for publication irrespective of the criteria in any case.

A parent company is not required to make consolidated annual financial statements if it itself is a subsidiary of a company that prepares consolidated annual financial statements in accordance with EU requirements (it does not apply to listed companies).


Companies are exempt from audit of financial statements if the following conditions are met during two straight financial years:

  • annual net assets do not exceed 300 000 000 HUF;
  • number of employees is not more than 50.

Audit must be conducted in accordance with the Hungarian state auditing standards adopted on 1 January 2001 and based on international auditing standards. In order to become an auditor, an individual must have three-year experience and pass qualification examinations.

Auditors must be members of the Chamber of Hungarian Auditors.

Frequency Asked Questions

What is the audit office of Hungary?
The audit office of Hungary is called the State Audit Office of Hungary (Magyar Államkincstár). It is an independent state body responsible for auditing the use of public funds, and its activities are regulated by the Constitution and laws of Hungary.
What accounting standards are used in Hungary?
In Hungary, the generally accepted accounting principles (GAAP) are based on the Hungarian Accounting Act and the Hungarian Accounting Standards. These standards are largely consistent with the International Financial Reporting Standards (IFRS), but there may be some differences in certain areas.
What is Hungary Act C of 2000 on accounting?
Act C of 2000 on accounting is the primary legislation governing accounting practices in Hungary. The act sets out the requirements for financial statements, accounting books and records, and the rules for preparing and auditing financial statements. It also establishes the responsibilities of accounting professionals and regulates the audit profession in Hungary. The act is regularly updated to keep up with changes in accounting practices and international accounting standards.
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