In the interest of protecting Hungary – in addition to the border fence, the reinforced protection of the borders and legal border closure – the government has also implemented a new tax policy measure. It has introduced an anti-immigration tax; the relevant provisions are taking effect on 25 August 2018.

The anti-immigration tax which is payable on funds used for assisting immigration is taking effect today. The first tax returns regarding grants provided during the period extending from 25 August to 31 August must be submitted by 15 September, and the tax payable at the rate of 25 per cent, too, must be paid by the same date.

Organisations which have no tax number but are engaged in activities that are subject to the anti-immigration tax must register with the National Tax and Customs Administration of Hungary. Those organisations have an obligation of registering with the tax authority which do not feature in the tax authority’s records – meaning that they have no tax number – and are therefore unable to submit their tax returns relating to the anti-immigration tax. They are required to meet their obligation of registration when they begin their taxable activities, i.e. when they a provide grant, at the latest. If, for instance, a foreign organisation not featured in the Hungarian tax authority’s records provides a grant for a domestic organisation on 25 August 2018, it must have a tax number for the fulfilment of its obligations related to the anti-immigration tax at the date mentioned. If it provides a grant later, the date of registration may also fall on a date after 25 August 2018.

The anti-immigration tax is payable primarily by organisations which provide grants. It is payable by the 15th day following the month in which they provide a grant, and they must simultaneously issue to the grantee a declaration regarding the fulfilment of their obligation to submit a tax return. If such a declaration is not issued, the grantee organisation – the organisation engaged in activities which assist immigration – with a seat in Hungary becomes the taxpayer. It is then required to establish, declare and pay the relevant tax by the 15th day following the month in which the grant is used. The donor is required to pay the tax on the amount of the sum of money transferred or on the value of any movable property provided, while if the grantee becomes the taxpayer, it must calculate the amount of the tax payable in relation to the costs of its activities which assist immigration. The tax is payable at the rate of 25 per cent.

According to available data, the fact that the country is required to continuously defend itself against illegal migration and its consequences costs the Hungarian budget a very large amount of money. The legislature therefore decided that organisations which assist illegal migration must contribute to the bearing of the country’s common burdens in the form of an anti-immigration tax.

The purpose of the new levy is not to increase tax revenues, but to discourage activities assisting immigration. However, all revenues derived from the anti-immigration tax are labelled, and can only be used for the fulfilment of border protection responsibilities.

The National Tax and Customs Administration of Hungary has published detailed information on the relevant rules which can be reached at the following link in Hungarian and English.

(Ministry of Finance)