Government Decree 298/2022 (VIII. 9) provides for the option of paying corporate tax in foreign currency. The taxpayer may report to the Hungarian Tax Office that he fulfills his corporate tax payment obligation in US dollars or euros. It can be reported until the first day of the month preceding the first day of the tax year, for the entire tax year. If the taxpayer wants to change from euros to dollars or vice versa, he can report it until the last day of the tax year, the change is effective from the first day of the next tax year. Those who have reported the above-written can declare until the last day of the tax year that they do not wish to use the option of paying the tax in foreign currency (the declaration is effective from the first day of the following tax year).

The taxpayer can fulfill the corporate tax advance and corporate tax payment obligation assessed and declared for the tax year subject to the reporting of the conversion to foreign currency by transferring it to an account opened for foreign currency tax payment held by the Hungarian State Treasury (MÁK) for this purpose. However, it should be noted that the cost of the conversion will be charged to the taxpayer if the transfer is launched from an account held in a currency other than the one reported.

The EUR or USD amount is credited to the taxpayer’s tax account in HUF amount calculated at the exchange rate published by the Hungarian National Bank (MNB) on the day of debiting the bank account of the transfer. Under the regulation payments cannot be made in EUR or USD to an account set aside for receiving and managing amounts paid as a result of enforcement.

Government Decree 366/2022 (IX. 26) on the payment of local business tax in foreign currency was published not long after. The taxpayer may pay the local business tax advance and local business tax due from 1 January 2023 to the account opened by the Hungarian State Treasury (MÁK) for the competent municipality that introduced the local business tax, or – if the taxpayer belonging to a special economic zone – for the Hungarian Tax Office for the purpose of tax payment in euros or US dollars.

The Hungarian National Bank (MNB), as the MÁK’s account manager bank, will immediately transfer the HUF amount equivalent to the EUR or USD amount credited to the MÁK account and converted at the exchange rate valid at the time of arrival of the amount, and in accordance with the General Terms and Conditions of the MNB in force at all times, to the local business tax collection account of the competent municipality or – if the taxpayer belongs to a special economic zone – of the Tax Office.

The payment date of the tax is the date when the tax is credited to the local business tax collection account of the competent municipality or Hungarian Tax Office, however, the competent tax authority indicates the amount and currency of the payment in EUR or USD, the conversion rate and the HUF amount on the statement produced from data registered on the tax account or when itemized data of the tax account is downloaded.