Family Protection and Maternity Allowances in Focus

In the recent period, the legislator has significantly expanded the range of allowances concerning mothers and families. In practice, the allowance for mothers raising four or more children provides an effective PIT exemption in respect of income qualifying as wages, income from non-independent activities, and certain income from independent activities. It is also a major relief that the allowance for mothers raising three or more children constitutes a lifelong entitlement, provided that the mother is entitled to family allowance in respect of three children or was previously entitled to this benefit for at least 12 years. As a completely new element and a major change, the allowance for mothers of two children is being introduced gradually in accordance with the legislation. Under the Act, from 2026, first mothers who have reached the age of 40, then from 2027 mothers who have reached the age of 50, and finally from 2028 mothers who have reached the age of 60 may also apply this allowance.

In the case of starting a family, the allowance for first-time married couples may be claimed by a married couple where at least one of the parties is entering into their first marriage, and its amount is HUF 33,335 per eligibility month. In addition, the classical system of family tax allowance has also remained in place, the amount of which is HUF 66,670 in the case of one dependant, HUF 133,330 per dependant in the case of two dependants, and HUF 220,000 per dependant in the case of three and each additional dependant.

Relief for Young People Entering the Labour Market and for Persons in Need on Health Grounds

The allowance for young people under the age of 25 is aimed at the labour-market integration of the younger generation and, similarly to the allowances for mothers, provides an effective PIT exemption in the case of income qualifying as wages and other specified income. A young person who has not yet reached the age of 25 is entitled to reduce their consolidated tax base by this allowance. An important limitation, however, is that the amount that may be claimed in a tax year may not exceed the product of the number of eligibility months and the national-economy-level average gross earnings published for July of the year preceding the relevant year.

A special compatibility rule also comes into effect where the first eligibility month for claiming the allowance for first-time married couples is postponed to the month before which one of the spouses reaches the age of 25. In addition to age-related and family allowances, the legal system also allows severely disabled private individuals to reduce their consolidated tax base by the personal allowance. For the purposes of the Act, a private individual is considered severely disabled if they suffer from a disease specified in a government decree, as is a person who receives a disability annuity or disability support. In this case, the financial amount of the allowance is one-third of the minimum wage per eligibility month, rounded to the nearest one hundred forints.

Strict Order for Claiming the Allowances

Since, due to their life circumstances, an employee may be entitled to several allowances at the same time, the legislator has established a strict order for claiming tax-base-reducing allowances in order to avoid accumulation and to clarify administration. At the very top of the hierarchy is the allowance for mothers under the age of 30, followed by the allowances for mothers raising four or more, three, and two children, respectively. This is followed by the allowance for the infant care fee, childcare fee and adoption fee, and then the allowance for young people under the age of 25. At the end of the order are the personal allowance, the allowance for first-time married couples, and finally the family allowance.

In order to reduce administrative burdens, the legislation provides that where a mother raising a child becomes entitled during the year to several successive maternity allowances—for example, the allowance for mothers under the age of 30 or the allowance for mothers with several children—she may claim the allowance for the entire year on the basis of the legal title applicable on the first day of the year. Where several such legal titles exist on 1 January, the mother may freely decide which one she wishes to claim, and she is not required to submit a new tax-advance declaration to her employer for this purpose.

When transferring a high-value property, the key question is not only under which legal title the property can be acquired, but also what tax or duty consequences arise from the chosen legal arrangement. This is particularly relevant where the acquirer does not fall within the scope of persons exempt from inheritance or gift duty. This raises an important question: which legal arrangement – inheritance, gift, maintenance agreement, inheritance contract or trust – may result in the lowest duty burden?

Notice: This article does not constitute legal advisory services, and does not necessarily match the interpretation of the applicable laws by the authorities. This article is for general information only.

In today’s modern legal environment, the documented and professional examination of digital evidence, as well as the protection of devices and user accounts, has become increasingly important in legal disputes and proceedings.

Our firm’s cooperating partner in this field is Biztonság Akadémia Kft.

The professional expertise of our partner is provided by Tamás Durmics, an independent IT security expert and ethical hacker with more than 25 years of experience in information technology and security. His work focuses on documented and independent examination methodologies, as well as on presenting technical findings in a clear and comprehensible manner suitable for use in legal proceedings.

One of the most common situations giving rise to the greatest number of conflicts during probate proceedings is when the deceased dies without making a testamentary disposition. In such cases, the fate of the assets and debts is determined by the statutory order of succession under the Hungarian Civil Code. Although the rules are clear, a significant proportion of clients are not aware of the more important changes introduced by the Civil Code currently in force, particularly with regard to the rights of the surviving spouse or the extent of the compulsory share.

Under the rules currently in force, the general rate of personal income tax (PIT) is 15 per cent of the tax base. In everyday language, many people lump the different concepts together and simply call every case in which no tax is deducted from their gross salary a “tax exemption.” From a legal-dogmatic perspective, however, classical tax exemption must be sharply distinguished from tax allowances. While tax-exempt revenues do not form part of the tax base in the first place, the tax system also recognises different rules that result in a reduction of the private individual’s tax: these are tax allowances reducing the consolidated tax base.

A particular characteristic of personal income tax is that these tax allowances and tax exemptions may be claimed only against income falling within the consolidated tax base and the tax thereon, and exclusively up to that amount.

Regulation (EU) 2024/1689 of the European Parliament and of the Council laying down harmonised rules on artificial intelligence represents a landmark step in reconciling innovation with the protection of fundamental rights in the digital sphere. The Regulation’s primary objective is to improve the functioning of the internal market and to promote the uptake of human-centric and trustworthy artificial intelligence (AI) within the European Union. At the same time, the Regulation attaches particular importance to ensuring a high level of protection of health, safety and fundamental rights—including democracy, the rule of law and environmental protection—against the potentially harmful effects of AI systems.