Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 6/19/2012

Hungary - Proposals include financial transaction tax, insurance premium tax 

June 19:  The Hungarian government submitted proposals for changes to the tax law pursuant to the “Széll Kálmán plan 2.0”—a portion of which has already been approved.

Approved tax law changes

The amendments that have already been accepted include changes concerning:


  • Tax relief with respect to certain wages paid for research and development (R&D) and software development
  • Rules allowing companies to reduce their profit for declared-but-not-yet -paid dividends
  • Broadening of an exemption from the transfer tax imposed on real estate transactions
  • An increase in the rate of the “Robin Hood” tax to 11%, and expansion of application of the tax to public utility service providers
  • “Recapitulative reports” for value added tax (VAT) purposes, thus reducing the range of transactions subject to reporting requirements
  • VAT reverse charges extended to agriculture-related transactions

Telephone tax

A telephone tax is effective beginning 1 July 2012. The tax is to be imposed on providers of telecommunication services (including phone calls, and SMS and MMS transmissions), but exemptions are available for certain services.


The service provider is to report and remit the tax on a monthly basis—the due date is the 20th day of the second month following the month of taxable phone calls/messages.

Bank tax, financial transaction tax, insurance premium tax

There are provisions in the legislation:


  • Broadening the bank tax
  • Affecting the law on the foreign exchange rate and a special tax for credit institutions

Other measures pending action by Parliament (expected in July 2012) would impose a financial transactions tax (beginning in 2013) on certain money transmissions conducted by financial service providers. The rate of tax would be 0.1% of the base amount of the payment transaction. The legislation defines which service providers would be subject to the financial transaction tax.


Also, the government intends to introduce a tax on insurance premiums, with an effective date of 1 January 2013.


Read a June 2012 report [PDF 353 KB] prepared by the KPMG member firm in Hungary: Approved and pending tax law changes—Széll Kálmán plan 2.0




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