Representatives of Hungary and the United States of America have signed an agreement, which has been initialed by both countries in November 2013, to improve international tax compliance and assist the implementation of FATCA regulation.
According to the agreement, data required under FATCA on US account holders, which has been compiled by Hungarian financial institutions, will be forwarded by the Hungarian tax authority to their counterpart in the U.S., and data compiled by U.S. financial institutions about Hungarian account holders will be forwarded by the U.S. tax authority to their counterpart in Hungary.
As a next step, the applicable provisions shall be enacted in the Hungarian legislation.
Related Newsflash:
Newsflash Hungary - Implementation of FATCA regulation
Impact on investors:
Hungary has progressed further with its plan to improve international tax compliance and assist the implementation of FATCA regulation. Concerning the implementation of FATCA regulation, the international agreement between the United States of America and Hungary has been officially signed officially. Accordingly the preparation of the required legislative changes is under process and the modifications will be published soon.