UniCredit Bank Hungary Zrt.
Thu, 01/06/2023
As of 1 July 2023, the Hungarian government has imposed new taxes on savings on the basis of Government Decree 205/2023. (31.V). According to the regulation natural persons are subject to the obligation to pay social contribution tax of 13% on interest income according to the Social Contribution Tax Act. Social contribution tax is payable on top of the 15% personal income tax, to be paid after interest income, taken into account as tax base as per Section 65 of the Hungarian Personal Income Tax Law with the exception of interest income from units of real estate funds.
Under the new decree the social contributions tax is payable in case of the following forms of income as of 1 July 2023.
Under the new decree the social contributions tax is payable in case of the following forms of income as of 1 July 2023.
- Credit institution deposits, payment accounts in the case of interest income on the receivables balance: the social contribution tax applies to the interest for the period following the entry into force of the decree. In case of Term Deposits, the tax applies to the interest rate of the fixed deposit deposited after June 30, 2023.
- Publicly traded bonds and investment notes: the tax applies to the interest income subject to personal income tax deriving from these securities acquired from the entry into force of the regulation.
- Object prize and securities drawn for prize deposit: the tax applies to the property value to which the private individual is entitled in its entirety as interest income for the period following the entry into force of the decree.
Savings life insurance: the social contribution tax applies to the insurer’s performance of the insurance contract concluded from the entry into force of the decree.
Impact on investors: As of July 1, 2023, social contribution tax is payable by natural persons after interest income from certain investment forms. For detailed information on the scope of the Regulation, please contact your tax adviser.