Starting January 1, 2025, the method for calculating late payment interest will change: instead of being assessed annually, it will now be calculated monthly.
However, under a transitional rule, taxpayers will only be required to make their first payment under the new system in April.
Dates to Keep in Mind:
March 31, 2025 – This is the deadline for paying late payment interest (penalty interest) that accrued in 2024. If your business had any debts in 2024 that incurred late payment interest, it must be paid by this date.
April 2025 – By this time, you’ll need to settle any late payment interest that accrued during the first quarter of 2025 (January–March). According to the transitional provision, this will be the first time the interest amount calculated under the new system must be paid.
From May 2025 – Starting in May 2025, late payment interest will be assessed on a monthly basis and must be paid by the 20th of each month.
Under the new system, the Hungarian Tax Authority (NAV) will no longer wait a full year to calculate late payment interest. Instead, it will calculate the interest due at the end of each month based on any outstanding debt.
It’s worth checking your company’s tax account balance in time to avoid further delays or possible warnings from the NAV.
How Is Late Payment Interest Calculated?
Formula: Base interest rate set by the National Bank of Hungary + 5 percentage points.
The interest is calculated on a daily basis and the exact amount is determined by dividing it over the 365 days of the year.
Important: If the annual total of late payment interest does not exceed HUF 5,000, it does not have to be paid.
How Can You Track the Balance of Your Interest Account?
At the end of each month, we send you a tax account statement, which includes the balance of your interest account.
To avoid further interest accumulation, make sure to pay before the deadline!