A new comprehensive Double Taxation Convention between the UK and the Republic of Hungary was signed in Budapest on 7 September 2011 by Greg Dorey, HM Ambassador to Hungary, and András Kármán, Hungarian Minister of State for Taxation and Financial Policy Affairs.
The convention replaces the 1977 agreement and generally follows the OECD Model Double Taxation Convention. Important features include zero withholding rates for direct investment dividends and dividends paid to pension funds, a 10 per cent rate for portfolio dividends (with a 15 per cent rate for REITS); zero withholding tax on interest and royalties; and the latest OECD provision on exchange of information.
The text of the new Convention is available on the HM Revenue & Customs website, and will be published by the Stationery Office as soon as it is presented to Parliament for approval.
Go to Tax treaties signed/not in force
The Convention enters into force once both countries have completed their legislative procedures.
HM Revenue & Customs
September 2011
