FiscalReps Meets the Hungarian Tax Authorities
FiscalReps has strong relationships with international tax authorities and regularly meets with them to ensure that information is always up to date and applied correctly. Although several attempts have been made to meet in person with the officers of the Hungarian Tax Authority (HUTA) in the past FRL has faced refusal so far up to this meeting last week.
The purpose of the meeting was to discuss the corrections of the returns submitted on behalf of the branches of the insurance companies for the period between 2013 and 2016. As previously communicated, a joint guideline was issued at the start of this year by HUTA and the Ministry of National Economy about the branch Insurance Premium Tax (IPT) registration requirements in Hungary. The guidance stated that branches located in the countries of the European Union, other than the Hungarian branches of a non-Hungarian insurance company, are not regarded as taxpayers for Hungarian insurance tax purposes. As such these branches are not subject to this tax in Hungary. Liabilities arisen on the basis of the businesses written by these non-Hungarian branches shall be declared under the Head Office`s tax registration. Due to the guidance issued by HUTA in 2013, which was contrary to the recent guidance, correction of the tax returns submitted on behalf of these branches has become necessary for the above period.
We are working towards an effective and efficient solution and will continue our communication with HUTA until this is achieved.
If you have any questions or require any further information, please contact your dedicated Client Team or Edit Buliczka.
t: +44 (0)20 7036 8070