Mária Lakatos

Taxation in General: Hungarian Tax System

Taxation of investments

In the case of investment income, the tax rate is the usual 15 %, but depending on the form of investment, in addition, a social contribution tax- (szocho) - must be paid, to a varying extent.

From taxation point of view, one of the most favorable forms of investment is the so-called controlled capital market transactions (In Hungarian: ETPÜ). This category includes transactions in financial assets and commodities that do not qualify as swaps with the financial service provider or with its participation, as well as spot transactions in foreign currency / currency settlements within the framework of the service. Financial service providers may include investment firms, commodity exchange service providers, investment fund managers, banks and credit institutions. In addition to Hungarian investment service providers, service providers operating in the EEA or in countries with which Hungary has an agreement to avoid double taxation of income, such as the Canada, may also be included (in the latter case, however, additional conditions must be met).

Income from such transactions is subject to 15b% PIT (Szja), but is not charged by Social contribution, szocho. The tax base is calculated by deducting from all closed transaction gains made in the tax year (in which the financial settlement has taken place), all transaction losses, i.e. transaction losses recognized in cash in the tax year and the relevant total amount of fees charged by the investment service provider, (such as account management fees, stock exchange fees directly related to transactions).

Anyone with income from a controlled capital market is liable for declaring and paying this tax for their income based on proofs from payers.

Taxation in General: Hungarian Tax System

Tartalomjegyzék

Kiadó: Akadémiai Kiadó

Online megjelenés éve: 2022

ISBN: 978 963 664 137 5

Taxation is a scheme for the state to provide revenue. The so collected money could then cover the public spending of the government. These are the so-called allocative and redistributive functions of the state budget. Although, taxation theory discusses the various tax types and analyses the various taxation tools very extensively, there is no absolute answer to the question, when and what type of taxation system would be optimal. Thus this introductory book on taxation deals with the three basic types of taxes - the income tax, the VAT and the corporation tax - in a very pragmatic way. There are legal texts and cases from both the international and also from the relevant Hungarian practice.

This book is recommended not only for students of economics but also for law students and practitioners beside anyone who is interested in the basic regulations of taxation.

Hivatkozás: https://mersz.hu/lakatos-taxation-in-general-hungarian-tax-system//

BibTeX EndNote Mendeley Zotero