Hungarian Gov't Introduces Euro in Company Taxation

The Hungarian government has decided to introduce another tax relief, Finance Minister Varga Mihály has announced. Companies can now pay tax in euros or US dollars.

For companies whose income is received partly or entirely in foreign currency, the new rule could bring simplification. The option to pay is available to all companies.

Administration will be reduced, tax revenues will remain unchanged and the budget balance will remain stable, the minister said in a commentary.

The financial website portfolio.hu notes that after the Hungarian currency, the forint's plunge in recent months, companies are switching to euro accounting. Earlier, László Parragh, President of the Hungarian Chamber of Commerce and Industry (MKIK), told the website that more and more companies are invoicing in euros because it is the stable point. Nowadays, there are hotels that already charge their guests in euros. And with Mihály Varga's announcement, companies can also pay their taxes in euros or US dollars. It is interesting that the government does not elaborate on the real reason for the decision. However, it may be related to the fact that the state may need foreign currency revenues, the portal says.