In the newsflash sent on 12 October, we advised about the new Double Tax Treaty for the avoidance of double taxation with respect to taxes on income and on capital. This treaty was signed on 1 June 2016 between Hungary and the Government of Turkmenistan and the related Act XCVI of 2016 was officially published on 4 October 2016.
According to the protocol, the contracting parties notified each other through diplomatic channels and domestic requirements for the entry into force of the Convention have been complied.
The Ministry of Foreign Affairs and Trade in its Communiqué has announced that the DTT has come into effect in both Contracting States:
- with respect to taxes withheld at source, on income derived in or after the 1st of January 2017;
- with respect to other taxes on income and on capital, for taxes chargeable for any tax year beginning on or after the 1st of January 2017.