TAX NEWS - 2010

Hungary Tax: Hungarian Banks to Pay $526 Million in Extra Tax This Year

Hungarian lenders will have to pay 120 billion forint ($526 million) into the state budget this year in a proposed tax on financial institutions, Kossuth Radio reported on its website, without saying how it obtained the information.

Lenders will have to pay the amount on top of the 13 billion forint, already included in the budget, by Sept. 30, according to Kossuth.

The government is seeking total revenue of 200 billion forint from the bank tax this year. Of the remaining 80 billion forint, insurers will have to pay 36 billion, financial leasing firms 12.5 billion, the state-owned development bank MFB Zrt. 5 billion with the rest divided among other financial businesses, Kossuth said.

The government expects to raise an annual 200 billion from the tax for two years, the station said.