Hungary Raising Tax Burden on Banks in Fight Against Coronavirus

Hungarian banks will pay 55 billion Hungarian forints ($169 million) this year in a special tax on the financial sector under a government proposal to raise more money to fight coronavirus impacts.

• The special tax amounts to 0.15% of total assets up to 50 billion forint and 0.2% of assets exceeding that amount.
• Under the government proposal, which has yet to be formalized in a government decree, an additional 0.19% will be charged this year on total assets exceeding 50 billion forint.
• According to the Ministry of Finance, the additional tax payments are to be made in three installments, by June 10, Sept. 10, and Dec. 10. They will be deductible from regular payments of the special tax over the next five years.

—With assistance from Zoltan Simon (Bloomberg)