According to a new government decree published in the Hungarian Gazette on 26 September 2022, taxpayers can pay their local business tax advance and local business tax from 1 January 2023 by transferring the amount in euro or US dollars. Taxpayers belonging to a special economic zone can pay the local business tax to the account opened for this purpose by the National Tax and Customs Authority.
The amount transferred will be converted into HUF at the current exchange rate of the National Bank of Hungary (at the time of crediting the collection account) and transferred to the relevant local municipality or to the account of the National Tax and Customs Authority.
The government decree will remain in force until the expiry of Act VI of 2022 on the elimination of the consequences of an armed conflict or humanitarian disaster in a neighbouring country. Earlier in August 2022, the Hungarian Government decided that the corporate income tax could be paid in euros or US dollars, citing the war economic situation. The change may bring great relief typically for companies whose income is received partly or entirely in a foreign currency.
By Eszter Kamocsay-Berta, Managing Partner, KCG Partners Law Firm
