Hungary
A draft law was passed by the Hungarian Parliament containing also provisions regarding the introduction of the Stability Savings Account (“SSA”). The SSA is a form of saving similar to long-term investment accounts with the difference that in this account any kind of income can be deposited anonymously.
Only private individuals may open an SSA at any credit institution engaged in investment activities, with a minimum initial deposit of HUF 5 million. The SSA is divided in a cash account and a securities account. Deposits can be made only once when the account is opened. However, private individuals may open an unlimited number of accounts, and the amount of the deposit is not capped.
Once withdrawn from the account, the income will be taxed at the rate applied to interest income (currently 16%), effective on the first day of the given year.
Unless otherwise provided by an international agreement, the income concerned must be treated as originating in Hungary, and the private individual as resident in Hungary. The credit institution will provide anonymous data to the state tax authority on deposits and withdrawals, and on taxes that may be deducted from the amounts paid out.
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