To tax or not to tax?

Banking

Plans to allow Hungarian private individuals and companies a tax amnesty if they transfer money from their foreign bank accounts to Hungary have not been implemented and might be completely scrapped, the daily Népszabadság reported on Monday. The plan to apply a 10% flat rate tax on these transactions and ensure anonymity to those who decide to bring their money home has been included in the government's "New Balance" fiscal program, but after concerns raised by tax advisors, it is currently under review by the Justice Ministry. According to the advisors, the plan's original version does not include guarantees to prevent the use of the scheme for money laundering, plus companies could exploit the amnesty opportunity as a loophole for tax evasion. Some other questions may rise if legalization those money be worth for the owners, knowing the current fiscal politics of the homeland. Compared to the risks involved for Hungary's international reputation and the budget's condition, the expected revenue from the scheme is miniscule, some experts said. Estimates show that Hungarian private individuals and companies hold nearly Ft 1,000 billion or about € 3.6 billion in bank accounts abroad, not to mention the investments in properties and other valuable things. Hungary plans to follow other European Union member countries' example by allowing a one-off tax amnesty on the transfer of this money back to Hungary. (MTI)

ADVERTISEMENT

Czech economic confidence weakens in July Analysis

Czech economic confidence weakens in July

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.