5 July 2012

Recently the Hungarian government submitted a Bill to the National Assembly for the implementation of an insurance premium tax to replace the three taxes (accident tax, fire brigade tax and surtax) that insurance companies currently pay.
If the Bill is approved the new tax will be introduced on 1 January 2013 and apply to gross premiums at the rate of 30% (motor third party liability policies), 15% (motor comprehensive policies) and 10% (accident and property policies). It is proposed that exemptions will apply to life and health insurance.
All insurers, including FOS and domestic insurers, who are liable to pay the tax must register for the tax and account for the tax at monthly intervals (by 20th of the month following the month in which the tax was incurred).
We are seeking further details on the proposed tax, including whether a fiscal representative will be required for non-Hungarian insurers.