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Business Associations to Report Foreign Bank Account Data Until 31 January 2018

Business Associations to Report Foreign Bank Account Data Until 31 January 2018

Hungary
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According to the new Hungarian tax procedural act entered into force on 1 January 2018, business associations are obliged to report data about their foreign bank accounts to the tax authority. The law requires that business associations having a foreign bank account number must report until 31 January 2018 such foreign bank account number and the name of the foreign bank on a special form applicable for this purpose. 

In case the business association closes its foreign bank account, or if it opens a new one, besides the name of the bank and the bank account number, the date of closure or opening must be reported in 15 days. 

The tax authority has no direct information whether a business association disposes of a foreign bank account, nevertheless, during a tax supervision at the business association concerned or at its business partners, the tax authority may become aware thereof. Furthermore, the automatic exchange of bank account-related information in the European Union also helps the tax authority to become informed about the foreign bank account.

If the business association fails to meet the data-reporting obligations upon request of the tax authority within 15 days, the business association has to pay a fine amounting to HUF 100,000. If the business association meets its obligation within this deadline, the fine may be reduced or withdrawn by the tax authority. In case it fails to report the data despite further written request of the tax authority within further 15 days, the amount of the fine to be paid is HUF 500,000, and this amount cannot be reduced even in case of the fulfilment of this obligation.

By Eszter Kamocsay-Berta, Partner, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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