As of 1 January 2025, Hungary has implemented the TEÁOR’25 classification system, replacing the TEÁOR’08 system that had been in place since 2008. The TEÁOR system (the Standard Industrial Classification of Economic Activities) is used, among other things, to classify the principal and secondary activities of Hungarian companies.
I. CONVERSION OF THE PRINCIPAL ACTIVITY CODE
In order to reduce the administrative burden on companies, the Central Statistical Office (KSH) will oversee the automatic assignment of the new principal activity codes. KSH will register these changes in the Company Register by 31 January 2025 at the latest – and most likely the changes to the principal activity and the statistical code have already been automatically registered in the Company Register, and the company certificate has been sent to most of our Clients.
Difficulty however may be experienced where the prior codes are split and segmented into multiple new codes (a so called “1:n connection”), which will be reclassified partly on the basis of information obtained from statistical data collection and administrative data transfer, and partly through a machine-learning algorithm based on such information. Where there is no data that can be used for the machine-learning algorithm, the company will be assigned the code that is rated most likely in the matching process.
II. CONVERSION OF THE SECONDARY ACTIVITY CODES
Since secondary activity codes are not recorded by the KSH, they will be converted by the Tax Authority, also until 31 January 2025. If the secondary activities are split into multiple new codes according to the new classification (1:n connections), there will be no direct, automatic alignment. In such instances, the companies/sole entrepreneurs are required to proactively report and update their activity codes no later than 1 July 2025.
If the company disagrees with and therefore cannot verify the updated TEÁOR codes assigned by the KSH and the Tax Authority, they may contact the Tax Authority (with regard to both the principal and secondary activities) and request a review, by 1 July 2025 at the latest.
Please note: by 31 August 2025, all TEÁOR’08 codes will be officially deactivated retroactively, effective as of 31 December 2024.
III. UPDATING THE CODES IN THE ARTICLES OF ASSOCIATION
Until 1 July 2025, companies are required to update their Articles of Association to reflect the updated principle activity code only when amendments to the Articles of Association are undertaken for other purposes.
If the company only changes the principal activity code after 1 July 2025, the Articles of Association must be amended immediately.
Regardless of the date, updates to the secondary activity codes are generally necessary only when amendments to the Articles of Association are undertaken for other purposes – so there is no change in this.
For associations and organizations that are not considered as companies and are obliged to register, it is not mandatory for the TEÁOR codes to be indicated in the founding documents, but if it is included, it is sufficient to update the codes when filing changes of their details in the relevant register.
The TEÁOR’25 code search program and comparison table of the KSH can be accessed at the following link:
Osztályozások kereső és fordítókulcs – Központi Statisztikai Hivatal