20 December 2012

On 30 November 2012 the Hungarian Parliament passed an amendment to the new IPT which is being introduced on 1 January 2013. Although the details are still to be confirmed, we understand that reduced rates of tax will apply to insurers who write insurance premiums of less than 8 billion forints, presumably over a year. In addition the tax base for the tax allows deduction for agricultural premiums, reinsurance premiums received and any payment of Fire Prevention Contribution paid in 2013 in respect of 2012 FPC liabilities.