background image
7.2. Capital Losses

In general, capital losses realized by Hungarian taxpayers on the sale of shares are deductible expenses for corporate tax purposes. However, capital losses on interests held in controlled foreign companies (CFCs, see Sec. 13.3.) are not deductible.

Tax regulations make it possible for capital gains realized on participation shares (so-called “reported participation”, see Sec. 10.1.) to be tax exempt subject to certain conditions. Correspondingly, capital losses on reported shares are non-deductible.