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HUNGARY ONLINE GAMBLING TAX PROPOSAL
Monday, September 26, 2011 : Specifics in tax amendment proposal
More details have emerged on proposed Hungarian online gambling regulations with a tax amendment proposal submitted to Parliament by the governing Fidesz party, according to local newswire MTI.
The amendments are based on a bill authored by Economy Minister György Matolcsy submitted to a parliamentary committee earlier this month.
Fidesz party member Antal Rogán, who also heads up the Hungarian parliament's economic committee, has proposed that internet gambling operator permits are subject to tax authority approval as of January 1, 2012 at a tax rate of 20 percent on net revenue, payable each month following a reporting period.
Permits would be valid for a five year period with a renewal option of a further five years.
Potential permit applicants would have to have a minimum registered capital of HUF 200 million in a member state of the European Economic Area as well as a "specific certificate" validating the company's credentials in that particular line of business, failing which a higher but unspecified "insurance" sum would become applicable.
Illegal operators will be sanctioned, facing fines of HUF 10 to 100 million.
Horse race betting and online card games have been included in the tax net, if operated via an electronic communication network.
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