In November 2014 we informed you that a Convention between the Government of Hungary and the Government of the Kingdom of Saudi Arabia for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income and on Capital was signed on 23 March 2014. The related Act was officially published on 30 October 2014. The Ministry of Foreign Affairs and Trade has announced in its communiqué no. 13/2015 (IV.30.) that this Double Tax Treaty signed with the Kingdom of Saudi Arabia came into force on 1 May 2015.
In respect of taxes withheld at source the Convention shall be applied for amounts paid on or after 1 January 2016. In respect of other taxes the Convention shall be applied for the tax years starting on or after 1 January 2016.
Impact on investors: Hungary has further progressed extending the number of DTTs to encourage foreign investment.
Related Newsflash: New tax agreements published in Hungary