Today the Government has introduced some tax changes which should have affect the companies who are operating in Hungary and to private individuals, who have investments in Hungary:
1. Health contribution on interest incomes
The Company would like to levy 6% health contribution on interest incomes earned by private individuals. This should mean that in addition to the 16% personal income tax the total tax and contribution liability on this income would be 22%. Currently there are no detailed information regarding this matter, however this should have effect to the banking transactions of the individuals
2. Telecommunication tax
The telecommunication tax, which should be paid by companies will be increased from 2 HUF to 3 HUF/minute, the upper level of the tax will be increased from HUF 2,500 to HUF 5,000.
3. Transaction duty
The transaction duty (which should be paid by financial institutions regarding banking transactions) will be increased.
The duty regarding cash withdrawals (e.g. cash withdrawal from bank ATM) will be increased from 0,3 % to 0,6% (without upper limit – the previous limit of HUF 6,000 will be cancelled).
The transaction duty (when there is a transfer between ban accounts) will be increased from 0,2% to 0,3% (with the upper limit of HUF 6,000).
As further details regarding these matters are not published yet (date, when the new regulations will be effective, temporary period rules) we will give you more information as soon as the Parliament will accept the changes.
dr. Kádár Zoltán
Tel: +36 307 779 549