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Government plans to impose 30% tax on offshore transactions

Finance Minister Péter Oszkó said on Monday that the government's planned 2010 tax package includes a 30% withholding tax on any transfers from Hungary to foreign offshore companies, including royalties, legal-service fees and interest payments.

The finance minister said following a Tuesday meeting of the Economic Coordination Council that both private individuals and companies will be subject to taxation on income derived from foreign locations where taxation is less then two-thirds that in Hungary.

Oszkó said that the government plans to tax all income generated in Hungary derived from offshore companies before 2010 that has not previously been subject to taxation. (MTI-ECONEWS)