On 21 December 2016, we advised you via our newsflash service of a new treaty on the avoidance of double taxation with respect to taxes on income. This treaty was signed on 2 November 2016 between Hungary and the Government of the Sultanate of Oman and the related Act CLXXVII of 2016 was officially published on 20 December 2016.
According to the protocol to the Treaty, the contracting parties have since then notified each other through diplomatic channels that the domestic requirements for the entry into force of the Treaty have been complied with.
The Hungarian Ministry of Foreign Affairs and Trade in its Communiqué has announced that the DTT will come into effect in both Contracting States on 18 March 2017 and can be applied:
- with respect to taxes withheld at source, to income derived on or after 1 January 2018
- with respect to other taxes on income, to taxes chargeable for any tax year beginning on or after 1 January 2018
Impact on investors: Hungary has progressed further with extending the range of existing DTTs, thereby increasing the possibility for avoiding double taxation.
Related Newsflash: New Double Tax Treaty with the Government of the Sultanate of Oman