As of 1 August 2023, the provisions of the Securities Transaction Tax (STT, previously established by Government Decree 197/2022 and amended by Government Decree 257/2022) have been incorporated into the amended Law CXVI of 2012 on the Financial Transaction Tax.
The amended rules of the STT now provide further clarification on the applicability of the STT. Effective as of 1 August, Securities Transaction Tax is not imposed on the purchase of a Hungarian ISIN designated security if the account holder is a non-resident individual or legal entity.
As a reminder, custody service providers have no duties related to the STT, as the acquisition of the in-scope securities is carried out by another service provider.
For more information on this topic, please refer to the previous articles:
https://gss.unicreditgroup.eu/markets/hungary/newsflashes/introduction-s...
https://gss.unicreditgroup.eu/markets/hungary/newsflashes/extension-tax-...
Impact on investors: For information purposes