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Generic Tax Name Capital tax - Financial transactions levy
Tax name in the national language Pénzügyi tranzakciós illeték
Tax name in English Financial transactions levy
Member State HU-Hungary
Tax in force since 2013/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Act 116 of 2012 on financial transactions levy

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments
 
Geographical Scope

Hungary

 
Taxpayers

Financial transaction duty shall be payable:

a) by the payment service provider of the payer in connection with the transfers of funds, direct debit transactions, cash withdrawals from payment account and payments initiated by the payer through the payee;

b) by the institution operating the Posta Elszámoló Központ (Post Clearing Center) in connection with cash deposits made through the institution operating the Posta Elszámoló Központ;

c) in connection with money remittance by the payment service provider which remits the corresponding amount;

d) in connection with documentary credits (L/Cs), by the payment service provider opening the letter of credit;

e) in connection with cashing cashier’s checks, by the payment service provider carrying the account of the issuing account holder;

f) in some cases the payment service provider of the payer;

g) in the case of loan repayment, by the payment service provider carrying the payment account;

h) in the case of cash withdrawals not covered by Paragraph a), by the payment service provider that keeps the credit line open in guarantee of the cash-substitute payment instrument;

i) in connection with currency exchange activities, by the credit institution authorized to pursue currency exchange activities initiating the sale by means of payment instrument, or by the special services intermediary of currency exchange services;

j) in connection with commissions and fees, by the payment service provider entitled to charge commissions and fees.

 
Tax object and basis of assessment

From among the payment transactions executed within the framework of payment services under a framework contract concluded by the payment service provider with a client as provided for in the Payment Services Act, the transfer of funds, direct debit, payments initiated by the payer through the payee, cash deposits made through the institution operating the Posta Elszámoló Központ (Post Clearing Center), cash withdrawals from payment accounts, money remittance, documentary credits (L/Cs), cashing cashier’s checks, and the sale by credit institutions authorized to pursue currency exchange activities and by special services intermediaries of currency exchange services by means of payment instrument, loan repayment and commissions and fees as charged shall be subject to payment of financial transaction duty. Moreover, cash withdrawals by means of cash-substitute payment instrument shall also be subject to payment of financial transaction duty, even if not debited to a payment account.

 
Deductions, Allowances, Credits, Exemptions

Liability for the payment of financial transaction duty shall not apply to:

a) payment transactions carried out between accounts carried by the same payment service provider, where the payer and the payee are the same person, or if at least some of the holders of the accounts to be debited and credited are the same;

b) payment transactions executed on a client account or some other account connected to investment services, including payment transactions executed between a payment account and a client account if:

1. the investment services are provided by an investment firm that is recognized - under the Act on the Rules of Taxation - as an affiliate of the payment service provider, and the payer and the payee are the same person, or

2. the payment service provider and the party providing investment services are members of the same voluntary institutional protection fund specified in the CIFE,

provided in both cases that the payer and the payee are the same person;

c) payment transactions covered by the Act on Settlement Finality in Payment and Securities Settlement Systems;

d) group financing activities specified in this Act provided that the accounts of the members of the group are carried by the same payment service provider;

e) payment transactions debited to the payment accounts maintained by the payment service provider for another - resident or nonresident - payment service provider, financial institution, investment firm, investment fund manager, central counterparty or investment fund;

f) payment transactions from the benefit and family welfare payment accounts of the social security system;

g) incorrectly executed payment transactions, authorized or otherwise, including the payment transaction executed to restore the payment account to its original state;

h) payment transactions executed from the restricted-access payment accounts;

i) payment transactions debited to accounts carried by the treasury, related to European Union financial assistance and settlements, and to settlements with international organizations;

j) payment transactions related to central appropriations exempted under the annual Budget Act;

k) payment transactions related to the national accounts carried by the treasury, and transactions on the related sub-accounts;

l) payment transactions related to the financial settlement of deals executed on the regulated natural gas market and on the market for trading in daily flows of natural gas and capacity rights as covered by the Act on Natural Gas, and on the regulated electricity market covered by the Act on Electric Energy.

As from 1 January 2015: 

m) transfers of funds, where the account to be debited or credited has been opened for raising funds in connection with some emergency under the Government Decree on the National Humanitarian Coordination Council;

n) payment transactions on implementation accounts carried by the treasury for payments of contributions to operators of non-governmental institutions relating to human services in the fields of public education, social, child welfare and child protection, and funds made available to support services, community benefits, visiting and assistance services with alert system, social employment programs, street social work and crisis centers;

o) payment transactions on payment accounts carried by the treasury for municipal governments for the management of working capital and net financing.

 
Rate(s) Structure

The amount of financial transaction duty to be charged shall be:

a) 0.3 per cent of the financial transaction duty base, but not exceeding 6,000 forints per payment transaction;

b) subject to the exception set out in Paragraph d), 0.3 per cent of the financial transaction duty base, if the duty is payable by the institution operating the Posta Elszámoló Központ or the treasury;

c) 0.6 per cent of the financial transaction duty base in the case of cash withdrawal from a payment account, or in the case of cash withdrawal by way of a cash-substitute payment instrument, but not exceeding 6,000 forints per payment transaction;

d) 0.3 per cent of the financial transaction duty base, but not exceeding 6,000 forints per payment transaction in connection with payment transactions related to the distribution of government securities, if the duty is payable by the treasury.

e) 800 forints on the financial transaction duty base reffered below;

f) 500 forints on the financial transaction duty base referred below covering a transaction carried with a contactless cash-substitute payment instrument, using the contactless function.

In the case of points e) and f) the basis of assessment of the financial transaction duty shall be in the case of payments initiated by the payer through the payee, the payment transactions initiated by the payer during the previous calendar year through the same cash-substitute payment instrument.

 
Tax due date

Payment service providers, credit institutions authorized to pursue currency exchange activities and special services intermediaries of currency exchange services shall declare their liability for payment of financial transaction duty - and shall effect payment thereof - monthly, by the 20th of the month following the transaction date, using the standard form prescribed by the state tax authority.

 
Tax collector

The tax is collected by the National Tax and Customs Administration.

 
Special features
 
Economic function







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Environmental taxes



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Tax revenue
ESA95 code As of April 2015 no revenue data is available

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