Representatives of Hungary and the United States of America initialled an agreement to improve international tax compliance and assist the implementation of FATCA regulation. According to the agreement, the data compiled from financial institutions will be forwarded to the tax authority of the United States and information will also be received by the competent authority of the relevant country instead of the financial institutions involved. With the initialling of the agreement the phase of professional negotiations has been finalized and the document will be signed officially after the treaty has been endorsed by the Hungarian government.
The agreement is not yet in force, as it will become effective once both countries have completed the ratification process.
Impact on investors: Hungary has progressed further with its plan to improve international tax compliance and assist the implementation of FATCA regulation. The related Act (Act CLXXXVII of 2013) was officially published, however, it has not entered into force yet. Concerning the implementation of FATCA regulation, the phase of professional negotiations has been finalized and the document will be signed officially after the treaty has been endorsed by the Government.