HUF 13 bln deposited in tax-free accounts in Q2

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Hungarian banks opened "Stability Savings Accounts" with deposits of HUF 12.942 bln in Q2, and the amount deposited doubled from the previous quarter, according to the National Tax and Customs Authority (NAV).

These special accounts were reportedly established as a sort of "amnesty" to lure off-shore bank accounts back into the country.

Stability Savings Account holders may benefit from tax exemptions, and they do not have to justify the origin of these assets. The tax authority does not scrutinize the origin of deposits on such accounts, and it does not require banks to report the names of the account holders. At least HUF 5 million has to be deposited in such an account, and an individual can open an unlimited number of accounts. Tax liability arises only when a part or the total sum is withdrawn from the account, however, if this happens after more than five years, the income is fully tax exempt. 

 Three times as many such accounts were opened in Q2 as compared to Q1, according to reports. The total stock of deposits on the accounts reached HUF 19.127 bln by the end of June 2014.

"Stability Savings Accounts" are available at OTP Bank, FHB, UniCredit Bank, Raiffeisen, MKB and Erste Bank, according to reports.

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