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Erste Group, one of the largest financial institutions in Central and Eastern Europe, has said its bank tax payments almost tripled in 2016 as a result of a change to Austrian tax law.
Banks in Austria were collectively required to make a EUR1bn contribution to the Austrian state budget under a revision to the bank tax law under which lower tax rates have applied since January 1, 2017.
Erste Group said in its results for 2016 that it made EUR306.7m (USD325m) in Austrian bank tax payments, up from EUR128.6m in the previous year. The company explained that the increase was attributable to a one-off bank tax payment in Austria of EUR200.9m.
As a result of this legislative change, Erste Group expects a "significant reduction" in future bank tax payments in Austria.
In total, Erste Group paid EUR388.8m in bank and financial transactions taxes in 2016, including EUR57m in Hungary (EUR84m in 2015) and EUR25.1m in Slovakia (EUR23.6m in 2015).
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