In November 2014 we informed you that a Convention between the Government of Hungary and the Government of the Kingdom of Bahrain for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income and on Capital had been signed on February 24, 2014. The related Act was officially published on October 30, 2014. The Ministry of Foreign Affairs and Trade has announced in its communiqué no. 21/2015 (VI.15.) that the Double Tax Treaty signed with the Kingdom of Bahrain comes into force on June 19, 2015.
With respect to taxes withheld at source, the Convention shall be applied for amounts paid on or after January 1, 2016. With respect to other taxes, the Convention shall be applied for the tax years starting on or after January 1, 2016.
Impact on investors: Hungary has further progressed extending the number of DTTs to encourage foreign investment.