In line with the informal guidelines of the European Commission and in accordance with the MoU concluded with the EBRD the Government has submitted to parliament an amendment on bank tax.

The bill cuts the higher tax rate by 0.07 percentage points, from the current 0.31 percent to 0.24 percent. The lower tax rate remains unchanged at 0.15 percent, up to HUF 50bn. In 2016, the tax base remains to be the modified balance sheet total of 2009.

Thanks to these modifications – and in accordance with the spirit of the MoU concluded by the Government and the EBRD in February 2015, the tax burden of the entire sector remains unchanged; accordingly, total tax revenues are not expected to be lower.

During the drafting of the bill, the Government had continuously negotiated with the Hungarian Banking Association and the European Commission Directorate General (DG) for Enterprises and Industry in order to create bank tax regulation acceptable for everyone and which are in line with European regulations.

The Government continues to be committed to complying with the agreement, according to which the bank tax rate is set to be further reduced in 2017. In addition, the Government aims to implement regulations that are acceptable for both the Hungarian banking sector and the European Commission Directorate General (DG) for Enterprises and Industry, and which offer a more favourable, flexible and progressive solution.

The Government plans to submit the bank tax bill for 2017 in the first half of 2016, along with the 2017 Budget.

(Ministry for National Economy)