Earlier in October 2015 we informed you that Hungary had ratified a new Treaty with the Principality of Liechtenstein on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, which was signed on 29 June 2015. The related Act was officially published on 14 October 2015.
According to the communiqué of the Hungarian Ministry of Foreign Affairs and Trade no. 41/2015 (XII.17.), the DDT will come into force on 24 December 2015.
With respect to taxes withheld at source, the provisions of DTT shall be applied for amounts paid on or after 1 January 2016.
With respect to other taxes, the provisions of DTT shall be applied for the tax years starting on or after 1 January 2016.
Impact on investors: Hungary has progressed further by extending the number of DTTs to encourage foreign investments.
Related Newsflash: New DTT with Liechtenstein