BUDAPEST (Reuters) -Hungary will allow companies to pay their corporate taxes in euros or U.S. dollars along with paying in forints, finance minister Mihaly Varga said in a Facebook post on Saturday.
“For companies who earn revenues partly or fully in a foreign currency, the new rule could simplify processes,” Varga wrote, adding that the option was available for all companies.
He said the change would simplify bookkeeping for companies while ensuring taxes kept flowing to the state and the budget remains balanced.
No further details were immediately available. There was a government press conference scheduled for 0900 GMT.
The forint, central Europe’s worst performing currency so far this year, hit a record low at 416.90 per euro earlier this month as it was pressured by a lack of agreement with the European Union over recovery funds, soaring inflation, a low level of foreign exchange reserves and a twin deficit.
A jump in gas prices also pressured the forint recently as it could worsen Hungary’s trade balance, traders and analysts have said.
Hungary, a small export-driven economy, is home to manufacturing plants of large German carmakers including Audi and Daimler.
(Reporting by Anita Komuves and Krisztina Than; Editing by Toby Chopra)
