Securities Related FTT Update

UniCredit Bank Hungary Zrt.
Summary: 
The Hungarian Parliament passed modifications to the tax rules for 2015 and pursuant to them the regulation on the effective date of the planned Financial Transaction Tax for securities and securities based derivative transactions was repealed, and the latter will therefore not enter into force in 2015.
Thu, 27/11/2014

In 2012 the Hungarian Parliament incorporated the possibility for future Financial Transaction Tax (FTT) payment duty on securities and securities based derivative transactions (Securities FTT) into the regulations of the Act on Financial Transaction Duty. Since 2012 the Securities FTT had not come in force as its effective date was defined as the first day of the calendar year following the year, in which the proposal for a directive on EU harmonized FTT would be approved, which has not materialised so far.

On 18 November 2014 the Hungarian Parliament passed modifications to the tax rules for 2015 and pursuant to the final approved tax rules the applicable sections defining the effective date of the Securities FTT were removed from the regulations. Based on the new regulations, the Securities FTT will not come in force in Hungary in 2015.

 

Impact on investors: Securities and securities based derivative transactions will remain exempt from FTT in Hungary in 2015.

 

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Financial Transaction Tax on Securities and Derivative Transactions to be Introduced

Securities Related FTT Update