OTP Bank Rt announced which special bank tax each of its subsidiaries will choose to pay this year. Under an amendment passed by parliament last year, Hungary's banks must opt to pay a 6% tax on interest revenue or a 24% tax on profits, which is 8 percentage points over the regular corporate rate.
OTP Bank and OTP Factoring Rt will pay the tax on interest revenue, and OTP Mortgage Bank Rt, OTP Home Savings Bank Rt, Merkantil Bank Rt, Merkantil Car Rt and real estate leasing company Merkantil Real Estate Leasing Rt will pay the higher profit tax, OTP announced on the website of the Budapest Stock Exchange. OTP Bank estimates the special tax will cost it Ft 9.6 bn. Still, the bank confirmed yesterday its target of a 10% increase in consolidated net profit this year.
Source: Budapest Business Journal
