A summary of legislative changes in respect of certain duties and taxes entering into force between August and October 2024

30/Aug/2024

A summary of legislative changes in respect of certain duties and taxes entering into force between August and October 2024

In line with the latest summer amendment, the various types of transaction duty increase from August 1st, 2024, and the conversion duty will come into force on October 1st, 2024. In addition to the duties payable on financial transactions, the amount of tax fines that can be imposed by the National Tax and Customs Authority will also increase.

  1. The Rate of the Transaction Duty Changed from August 1st, 2024

The transaction duty is a type of duty paid by banks and other financial institutions to the State on the transfers of funds made by them. Provided that this duty is usually passed on by banks to their customers, it is ultimately borne by the customers. The amount of the transaction duty is determined by the type of transaction for which it is levied.

From August 1st, 2024, the transaction duty for cash withdrawals was changed from 0.6% to 0.9% of the amount withdrawn, regardless of the quantity of the amount. Similarly, the transaction duty for bank transfers has also increased from 0.3% to 0.45%, but it cannot exceed HUF 20,000 per payment transaction. Together with the above, the rate of transaction duty on securities transactions has also increased by 50%, from 0.3% to 0.45% per transaction, but the amount payable cannot exceed HUF 20,000 per transaction.

The Conversion Duty Will Arrive on October 1st, 2024

From October 1st, 2024, if a transaction involves a conversion between different currencies, an additional conversion duty of 0.45% will be levied on top of the 0.45% general transaction duty. However, the total amount of the 0.9% duty payable per transaction may not exceed HUF 20,000.

  1. Tax Fines Imposed by the National Tax and Customs Authority Are Increased from August 1st, 2024

From August 1st, 2024, the amount of default fines that can be imposed by the National Tax and Customs Authority for incorrect, incomplete, untrue or late fulfilment of tax obligations or non-compliance with tax obligations is increased from HUF 200,000 to HUF 400,000 for natural persons and from HUF 500,000 to HUF 1,000,000 for legal entities. Likewise, the amount of the fine for employing undeclared labour is increased from HUF 1,000,000 to HUF 2,000,000, as the upper limit for the fine for failure to comply with the obligation to submit invoices or archive documents, from HUF 1,000,000 to HUF 2,000,000.

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This summary is intended to raise awareness and does not constitute legal advice.
If you have any questions or need further information, please do not hesitate to contact us.

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