Capital Gains Tax

From 1 January 2011, the capital gains tax rate is 16%. Before this date, the capital gains tax rate was 20%.

Beneficial owners that are legal entities, whether resident or non-resident of Hungary, are exempt from capital gains tax.

Hungarian law does not currently recognise the nominee concept for capital gains. The entity in whose name the account is opened in Hungary is regarded, for Hungarian tax purposes, as the party subject to personal income tax.

Consequently, interest payments made on Hungarian debt securities registered in the name of Clearstream Banking are exempt from capital gains tax because legal entities are not subject to these taxes. No action is required by the customer to ensure that this exemption is applied.

Note: It remains the responsibility of beneficial owners that are individual persons to comply, through their annual fiscal declaration, with all legal and regulatory requirements imposed by the legislation of their country of residence in respect of all domestic and foreign income received during the respective calendar year. Clearstream Banking has no direct or indirect liability towards the respective tax authorities, including those of Hungary, if this obligation is not respected by the individual beneficial owners.