GOVERNMENT DECREE ON THE PAYMENT OF LOCAL BUSINESS TAX IN FOREIGN CURRENCY NOW PUBLISHED

In our newsletter https://www.knplaw.com/en/government-decree-298-2022-viii-9-on-the-payment-of-corporate-income-tax-in-foreign-corrency-has-been-published/ posted on August 11, 2022, we summarized the most important rules of Government Decree No. 298/2022 (VIII.9.) on the payment of corporate taxes in foreign currencies.

Now that the Government Decree No. 366/2022 (IX. 26.) (hereinafter: “Government Decree”) is published, we can summarize the provisions in their final form relating to the payment of local business taxes in foreign currencies:

• Pursuant to the Government Decree, taxpayers may pay their local business tax advance and local business tax due from January 1, 2023, by transferring the amount in Euros and/or US Dollars to the account opened by the Hungarian State Treasury for the payment of local business tax to the competent municipality which introduced the local business tax or to the National Tax and Customs Administration (Hungarian abbreviation: “NAV”).

• To fulfil the payment obligation, the Hungarian State Treasury will transfer the HUF amount (calculated at the then effective exchange rate of the Hungarian National Bank) of the Euro and/or US Dollar amount transferred by the taxpayer to the competent local government or the NAV’s bank account.

• The date of payment of the tax is the date when the local business tax amount is credited in the competent municipality or the NAV’s bank account.

• The Government Decree enters into force on the 15th day following its publication, which in this case is October 12, 2022, and will remain in force until the expiry of Act VI of 2022 on the elimination of the consequences of armed conflict or humanitarian disaster in Hungary in a neighboring country.