GOVERNMENT DECREE 298/2022 (VIII.9.) ON THE PAYMENT OF CORPORATE INCOME TAX IN FOREIGN CORRENCY HAS BEEN PUBLISHED

To update and amend our newsletter posted on August 2, 2022, https://www.knplaw.com/en/companies-will-be-able-to-pay-corporate-income-tax-and-local-business-tax-in-euros-and-us-dollars/ we hereby summarize the Government Decree published on August 9, 2022 in the official Hungarian Gazette on the detailed rules on how companies can pay their tax payment obligations in Euros and/or US Dollars.

Pursuant to Government Decree No. 298/2022 (VIII.9), companies have the opportunity to inform the National Tax and Customs Administration (NAV) of their intention to pay their tax liabilities in foreign currency until the first day of the month preceding the first day of the tax year, which is December 1 in 2022. The amendment becomes effective from the first day of the following tax year. Companies are obliged to pay their taxes in foreign currency to the Hungarian State Treasury’s account specifically opened to receive tax payments in foreign currencies.

The transferred Euro or US Dollar amounts will be credited to the taxpayer's tax account in HUF calculated at the exchange rate published by the Hungarian National Bank (MNB) on the day when the amount is received on the account of the Hungarian State Treasury. In case the Hungarian National Bank does not publish an exchange rate on the day the Hungarian State Treasury receives the amounts paid, the HUF amount will be determined at the most recently published exchange rate.

The Government Decree became effective on August 10, 2022.