The regulation of the newly introduced special tax of credit institutions is based on the system of the special tax of financial institutions. The tax base is the part of the adjusted balance sheet total, calculated based on the annual financial statements prepared for the second financial year preceding the tax year, exceeding HUF 50 billion. The tax rate is 0.19%. As this new special tax has the same tax base as the already effective special tax for financial institutions, the introduction of this new special tax can be practically considered as a temporary increase of the ‘old’ tax on financial institutions by 0.19 percentage points.
By 10 June 2020, credit institutions are required to file their tax return electronically on the appropriate form prepared for such purposes, while the payment of the tax liability will be due in three instalments (by 10 June 2020, 10 September 2020 and 10 December 2020). Credit institutions may reduce their tax liability up to 50% with the tax incentive of supporting spectator sports in Hungary, similarly to the respective rules of the special tax of financial institutions.
According to the official communication, the credit institutions might become eligible to deduct the paid amounts from the special tax of financial institutions in the following five years. However, the legal background of this deduction has not been clarified yet.
The Hungarian government expects to receive approximately HUF 55 billion from the credit institutions based on the new special tax this year.
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