Tax benefits of the asset management foundation and trust in Hungary

Abstract

The tax treatment of the trust, the private foundation and the AMF is based on tax neutrality in Hungary, providing at least an equal and not burdensome treatment of these vehicles compared to any other alternative legal solutions. This treatment includes that the trustee and the foundation are treated as intermediaries from a tax and stamp duty perspective, with the outcome that the acquisition of the ownership of the transferred assets by the trustee or foundation does not trigger taxation. Moreover, asset owners are encouraged to use these vehicles as significant tax benefits that are provided in connection with the asset transfer, management and distribution.