As of 01.02.2026, new rules for the taxation of representation costs came into force a 10/2026. And 24/2026. Government regulations based on
At first glance, the change is favorable: in some cases, restaurant and confectionery catering can become tax-free .
But the practice is much more complex than that.
What constitutes representation?
Simply put:
all hospitality related to business or professional purposes.
This could be, for example:
- a discussion with a business partner over a dinner
- meal after the conference
- corporate event if it has real professional content
The exact definition is contained in the Sja law, but the point is: have a demonstrable business purpose
What will not be tax-free?
It is important that many things still do not fit:
- meals for employees
- lunch with colleagues "just like that".
- team building if there is no professional content
- consumption of cafes, bars, buffets (does not qualify as restaurant hospitality)
In other words, not every "business lunch" will be a representation.
The most important thing: documentation
This is where companies tend to slip up.
The tax exemption can only be applied , if the hospitality is properly documented.
This doesn't mean just one bill.
At least the following should be clear:
- what was the purpose of the event (e. g. Business negotiation)
- who participated (by name, in what capacity)
- where and when it happened
- what was the professional content
If these do not add up, the cost is easy may become taxable .
There is also an upper limit
The tax exemption is not unlimited:
- annual income at most up to 1%, and
- maximum up to HUF 100 million can be applied
The part above it is already taxable, the same as before.
What is worth paying attention to?
Regulation has become more favorable, but not simpler.
The biggest risk:
- no proper documentation
- the business purpose cannot be proven
- they "pull" the representation on costs that are not really
In this case, the entire cost may be taxed (according to SZJA, socho or KIVA).
in summary
In some cases, the representation may actually become tax-free from 2026,
but only then , if:
✔ there is a real business purpose behind it
✔ it is about consumption in a restaurant or pastry shop
✔ properly documented
✔ and fits within the legal framework
A restaurant bill alone is not enough.
Practical advice
If you are unsure whether a particular expense qualifies,
worth more treat conservatively , and exempt only the items that can be clearly substantiated.