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Fidesz MP proposes to make exempts from extraordinary tax

Hungarian insurance companies which have acquired license after June 1, 2007 would not be required to pay the government's extraordinary financial-sector tax, according to an amendment to the bill on the proposed tax submitted by Antal Rogán, chairman of parliament's economic committee.

In another amendment Hungarian branches of insurance companies based in another EU member state would have to pay the tax.

Rogán proposed to amend the tax base of investment companies, allowing the deduction of the costs related to investment services operations. The change would cut the revenue the tax would bring in from investment companies to HUF 1.1 bilionn from HUF 2.2 billion this year.

The modifications to the proposed extraordinary financial-sector tax that Minister of National Economy György Matolcsy submitted to parliament last Friday also stipulate that Hungarian branches of insurance companies headquartered in other European Union states be subject to the tax .

With another proposed amendment, insurance companies would pay 5.9% of their premium revenue, excluding reinsurance revenue, as the tax rather than the originally planned 5.2%. (MTI-ECONEWS)