Hungary Increases Financial Transaction Tax

UniCredit Bank Hungary Zrt.
The Hungarian Minister of National Economy Mihály Varga has announced on Monday additional fiscal adjustment measures to avoid any possible reopening of the excessive deficit procedure against the country. One of the measures is the increase of the financial transaction tax (FTT).
Tue, 18/06/2013

The Minister of National Economy submitted a legislative proposal to the Parliament yesterday that supports tax increases in order to keep the budget deficit. One of the most important measures announced is a doubling of the FTT rate on cash payments from 0.3% to 0.6% and the current applicable cap of HUF 6,000 shall be abolished. The FTT rate on transfers between accounts was raised to 0.3% from 0.2%, but the upper limit of HUF 6,000 will be maintained.

In addition to the above, a 6% healthcare contribution will be payable on interest and capital revenues that applies only to individuals, but further consultation is needed to determine the range of affected individuals.

UniCredit Bank Hungary Zrt. will analyse the draft proposal as soon as it is available and will provide further details as soon as possible.

Related Newsflash: Newsflash Hungary - Financial Transaction Tax Update

Impact on investors: Based on the latest information clients of UniCredit Bank Hungary’s Global Securities Services, being banks and other financial institutions, are not liable to the FTT in 2013 and to the best of our knowledge this fact is not affected by the above proposal.