Long-term investment account – hole in the net
2 January 2014
The purpose of the personal income tax is to make Hungarian tax residents liable to tax on all their personal income irrespective of where the income is sourced and in which form it is realized. The personal income tax laws, therefore, create a net around the individuals and any item of income can only get through the net if it has been taxed. On this net a rather big hole was cut by the introduction of the so called long-term investment account (“TBSz”) in 2010.