COMPANIES WILL BE ABLE TO PAY CORPORATE INCOME TAX AND LOCAL BUSINESS TAX IN EUROS AND US DOLLARS

Mihaly Varga, Minister of Finance of Hungary announced via social media on Saturday on July 30, 2022, that companies will be able to pay corporate their income tax and local business tax in Euros and/or US Dollars, in addition to Hungarian Forints.

According to the currently effective provisions of Act LXXXI of 1996 on Corporate Tax and Dividend Tax together with the provisions of the Act C of 1990 on Local Taxes:

“tax returns shall be prepared in the Hungarian language, denominated in Hungarian Forint.”

Based on the information provided by the National Tax and Customs Administration (Hungarian abbreviation: “NAV”), the official information regarding the tax law changes is expected to be published in the Official Gazette of Hungary in the next days. The official information will also determine the exchange rates businesses should use when preparing their tax returns in Euros and/or US Dollars. With these tax law changes, it is expected that corporate income and local business taxes paid in Euros and/or US Dollars will strengthen the Hungarian Forint exchange rate.

The Minister of Finance also stated that the new amendments of the law will ease the administration burden of companies whose revenues are completely or partially in foreign currencies, but companies remain at liberty to determine to prepare their tax returns and pay their taxes in Hungarian Forints, Euros or US Dollars.