Hungary’s largest retail bank, OTP, has revealed that its tax bill will rise by 9.6 billion forints ($50 million) as a result of an additional tax to be levied on the banking sector over the next two years.
Under a government plan to raise an additional 30 billion forints (US$149.1 million) in taxes per year over 2005 and 2006 to help it achieve its fiscal targets, Hungary's banks were given the option to pay income tax at 24% instead of the standard 16% rate, or pay an extra 6% tax on their net interest margins during 2005 and 2006.
While OTP chose to pay the tax on its net interest margin at its core banking unit, most of its subsidiaries, including its mortgage, lease finance and insurance units, opted to increase their corporate tax contributions.
However, despite the increased tax burden, OTP has announced that its bottom line will not be unduly affected, and has stuck to initial projections of 10% after-tax profit growth for this year.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment