Government plans 35% withholding tax on income held in offshore accounts

Based on a press release of the PM's Office, on 16 January 2013, the government decided to levy a 35% withholding tax on income of Hungarian residents held in offshore accounts.

The imposition of the new tax is a result of the fact that the tax amnesty regime, elapsed in 2012, failed to make Hungarian individuals repatriate their income. According to reports, approximately HUF 67 billion (EUR 230 milllion) were repatriated under the tax amnesty regime generating only HUF…