Interest tax avoidance schemes raise doubts


With interest income becoming taxable in less than two weeks ahead on Sept. 1 and taxpayers in a mad rush to precede the deadline, questions still surround the legality of long-term savings accounts designed by commercial banks to attract tax-shy clients, according to daily Népszabadság.
In line with the new tax regulations, money deposited in a savings account before the end of August will be exempt from the new 20% tax until withdrawn, however, there is uncertainty whether a Civil Code clause dating back to 1989 that requires banks to pay interest on savings at the end of each calendar year should be interpreted as restricting the maximum length of a deposit to 12 months before it must be renewed and lose tax-free status. To complicate matters, banks are currently not required to follow a standard format when advertising interest rates to make them comparable. According to business daily Napi Gazdaság, the State Financial Supervisory Authority (PSzÁF) requested the Finance Ministry to clarify these issues, but has not received any answers yet.


Croatia inflation steady in May Figures

Croatia inflation steady in May

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.