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2011. évi CXLIV. törvény a Magyar Köztársaság és Nagy-Britannia és Észak-Írország Egyesült Királysága között a jövedelem- és a tőkenyereség-adók terül

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Ez a törvény a Magyar Köztársaság és az Egyesült Királyság közötti megállapodást hirdeti ki, amelynek célja a jövedelem- és tőkenyereség-adók területén a kettős adóztatás elkerülése és az adóztatás kijátszásának megakadályozása.

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2011. évi CXLIV. törvény a Magyar Köztársaság és Nagy-Britannia és Észak-Írország Egyesült Királysága között a jövedelem- és a tőkenyereség-adók területén a kettős adóztatás elkerüléséről és az adózta

HUNGARY AND THE UNITED KINGDOM

GREAT BRITAIN AND NORTHERN IRELAND FOR THE AVOIDANCE

DOUBLE TAXATION AND THE PREVENTION

FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL GAINS The Republic

Hungary and the United Kingdom

Great Britain and Northern Ireland, desiring to conclude a Convention for the avoidance

double taxation and the prevention

fiscal evasion with respect to taxes on income and capital gains, Have agreed as follows: ARTICLE 1 PERSONS COVERED This Convention shall apply to persons who are residents

one or both

the Contracting States. ARTICLE 2 TAXES COVERED

(1)This Convention shall apply to taxes on income and on capital gains imposed on behalf

a Contracting State or

its political subdivisions or local authorities, irrespective

the manner in which they are levied.

(2)There shall be regarded as taxes on income and on capital gains all taxes imposed on total income or on elements

income, including taxes on gains from the alienation

movable or immovable property, taxes on the total amounts

wages or salaries paid by enterprises, as well as taxes on capital appreciation.

(3)The existing taxes to which this Convention shall apply are in particular: (a) in the case

Hungary: (

  1. i)the personal income tax; and (
  2. ii)the corporate tax; (hereinafter referred to as „Hungarian tax”); (
  3. b)in the case

the United Kingdom: (

  1. i)the income tax; (
  2. ii)the corporation tax; and (iii) the capital gains tax; (hereinafter referred to as „United Kingdom tax”).

(4)This Convention shall also apply to any identical or substantially similar taxes that are imposed after the date

signature

this Convention in addition to, or in place

, the existing taxes. The competent authorities

the Contracting States shall notify each other

any significant changes that have been made in their respective taxation laws. ARTICLE 3 GENERAL DEFINITIONS

(1)For the purposes

this Convention, unless the context otherwise requires: (a) the term „Hungary” means the Republic

Hungary and, when used in a geographical sense, means the territory

the Republic

Hungary; (b) the term „United Kingdom” means Great Britain and Northern Ireland, including any area outside the territorial sea

the United Kingdom designated under its laws concerning the Continental Shelf and in accordance with international law as an area within which the rights

the United Kingdom with respect to the sea bed and subsoil and their natural resources may be exercised; (

  1. c)the terms „a Contracting State”, and „the other Contracting State” mean Hungary or the United Kingdom, as the context requires; (
  2. d)the term „person” includes an individual, a company and any other body

persons; (

  1. e)the term „company” means any body corporate or any entity that is treated as a body corporate for tax purposes; (
  2. f)the term „enterprise” applies to the carrying on

any business; (g) the terms „enterprise

a Contracting State” and „enterprise

the other Contracting State” mean respectively an enterprise carried on by a resident

a Contracting State and an enterprise carried on by a resident

the other Contracting State; (h) the term „international traffic” means any transport by a ship or aircraft operated by an enterprise

a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (i) the term „competent authority” means: (i) in the case

Hungary, the Minister for National Economy or his authorised representative; (ii) in the case

the United Kingdom, the Commissioners for Her Majesty’s Revenue and Customs or their authorised representative; (

  1. j)the term „national” means: (
  2. i)in relation to Hungary any individual possessing the nationality

Hungary; or any legal person, partnership, association or other entity deriving its status as such from the laws in force in Hungary; (ii) in relation to the United Kingdom, any British citizen, or any British subject not possessing the citizenship

any other Commonwealth country or territory, provided he has the right

abode in the United Kingdom; and any legal person, partnership, association or other entity deriving its status as such from the laws in force in the United Kingdom; (k) the term „business” includes the performance

professional services and

other activities

an independent character; (

  1. l)the term „pension scheme” means any plan, scheme, fund, trust or other arrangement established in a Contracting State which is: (
  2. i)generally exempt from income taxation in that State; and (
  3. ii)operated principally to administer or provide pension or retirement benefits or to earn income for the benefit

one or more such arrangements.

(2)As regards the application

this Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law

that State for the purposes

the taxes to which this Convention applies, any meaning under the applicable tax law

that State prevailing over a meaning given to the term under other laws

that State. ARTICLE 4 RESIDENT

(1)For the purposes

this Convention, the term „resident

a Contracting State” means any person who, under the laws

that State, is liable to tax therein by reason

his domicile, residence, place

management, place

incorporation or any other criterion

a similar nature, and also includes that State and any other political subdivision or local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only

income or capital gains from sources in that State.

(2)The term „resident

a Contracting State” includes: (

  1. a)a pension scheme established in that State; and (
  2. b)an organisation that is established and is operated exclusively for religious, charitable, scientific, cultural, or educational purposes (or for more than one

those purposes) and that is a resident

that State according to its laws, notwithstanding that all or part

its income or gains may be exempt from tax under the domestic law

that State.

(3)Where by reason

the provisions

paragraph

(1)an individual is a resident

both Contracting States, then his status shall be determined as follows: (a) he shall be deemed to be a resident only

the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only

the State with which his personal and economic relations are closer (centre

vital interests); (b) if the Contracting State in which he has his centre

vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident only

the State in which he has an habitual abode; (c) if he has an habitual abode in both Contracting States or in neither

them, he shall be deemed to be a resident only

the State

which he is a national; (d) if he is a national

both Contracting States or

neither

them, the competent authorities

the Contracting States shall settle the question by mutual agreement.

(4)Where by reason

the provisions

paragraph

(1)a person other than an individual is a resident

both Contracting States, then the competent authorities

the Contracting States shall determine by mutual agreement the Contracting State

which that person shall be deemed to be a resident for the purposes

this Convention. In the absence

a mutual agreement by the competent authorities

the Contracting States, the person shall not be considered a resident

either Contracting State for the purposes

claiming any benefits provided by the Convention, except those provided by Articles 24 and 25. ARTICLE 5 PERMANENT ESTABLISHMENT

(1)For the purposes

this Convention, the term „permanent establishment” means a fixed place

business through which the business

an enterprise is wholly or partly carried on.

(2)The term „permanent establishment” includes especially: (a) place

management; (

  1. b)a branch; (
  2. c)an

fice; (

  1. d)a factory; (
  2. e)a workshop; and (
  3. f)a mine, an oil or gas well, a quarry or any other place

extraction

natural resources.

(3)A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months.
(4)Notwithstanding the preceding provisions

this Article the term „permanent establishment” shall be deemed not to include: (a) the use

facilities solely for the purpose

storage, display or delivery

goods or merchandise belonging to the enterprise; (b) the maintenance

a stock

goods or merchandise belonging to the enterprise solely for the purpose

storage, display or delivery; (c) the maintenance

a stock

goods or merchandise belonging to the enterprise solely for the purpose

processing by another enterprise; (d) the maintenance

a fixed place

business solely for the purpose

purchasing goods or merchandise, or

collecting information, for the enterprise; (e) the maintenance

a fixed place

business solely for the purpose

carrying on, for the enterprise, any other activity

a preparatory or auxiliary character; (f) the maintenance

a fixed place

business solely for any combination

activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity

the fixed place

business resulting from this combination is

a preparatory or auxiliary character.

(5)Notwithstanding the provisions

paragraphs

(1)and
(2), where a person – other than an agent

an independent status to whom paragraph

(6)applies – is acting on behalf

an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts on behalf

the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect

any activities which that person undertakes for the enterprise, unless the activities

such person are limited to those mentioned in paragraph

(4)which, if exercised through a fixed place

business, would not make this fixed place

business a permanent establishment under the provisions

that paragraph.

(6)An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent

an independent status, provided that such persons are acting in the ordinary course

their business.

(7)The fact that a company which is a resident

a Contracting State controls or is controlled by a company which is a resident

the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not

itself constitute either company a permanent establishment

the other. ARTICLE 6 INCOME FROM IMMOVABLE PROPERTY

(1)Income derived by a resident

a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

(2)The term „immovable property” shall have the meaning which it has under the law

the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions

general law respecting landed property apply, usufruct

immovable property and rights to variable or fixed payments as consideration for the working

, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.

(3)The provisions

paragraph

(1)shall apply to income derived from the direct use, letting, or use in any other form

immovable property.

(4)The provisions

paragraphs

(1)and
(3)shall also apply to the income from immovable property

an enterprise. ARTICLE 7 BUSINESS PROFITS

(1)The profits

an enterprise

a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits

the enterprise may be taxed in the other State but only so much

them as is attributable to that permanent establishment.

(2)Subject to the provisions

paragraph

(3), where an enterprise

a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise

which it is a permanent establishment.

(3)In determining the profits

a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes

the permanent establishment, including executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere.

(4)No profits shall be attributed to a permanent establishment by reason

the mere purchase by that permanent establishment

goods or merchandise for the enterprise.

(5)For the purposes

the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

(6)Where profits include items

income or capital gains which are dealt with separately in other Articles

this Convention, then the provisions

those Articles shall not be affected by the provisions

this Article. ARTICLE 8 SHIPPING AND AIR TRANSPORT

(1)Profits derived by a resident

a Contracting State from the operation

ships or aircraft in international traffic shall be taxable only in that State.

(2)For the purposes

this Article, profits from the operation

ships or aircraft in international traffic include: (a) profits from the rental on a bareboat basis

ships or aircraft; and (b) profits from the use, maintenance or rental

containers (including trailers and related equipment for the transport

containers) used for the transport

goods or merchandise; where such rental or such use, maintenance or rental, as the case may be, is incidental to the operation

ships or aircraft in international traffic.

(3)The provisions

paragraph

(1)shall also apply to profits from the participation in a pool, a joint business or an international operating agency. ARTICLE 9 ASSOCIATED ENTERPRISES
(1)Where (a) an enterprise

a Contracting State participates directly or indirectly in the management, control or capital

an enterprise

the other Contracting State; or (b) the same persons participate directly or indirectly in the management, control or capital

an enterprise

a Contracting State and an enterprise

the other Contracting State; and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one

the enterprises, but, by reason

those conditions have not so accrued, may be included in the profits

that enterprise and taxed accordingly.

(2)Where a Contracting State includes in the profits

an enterprise

that State – and taxes accordingly – profits on which an enterprise

the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise

the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount

the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions

this Convention and the competent authorities

the Contracting States shall if necessary consult each other. ARTICLE 10 DIVIDENDS

(1)Dividends paid by a company which is a resident

a Contracting State to a resident

the other Contracting State may be taxed in that other State.

(2)However, such dividends: (a) may also be taxed in the Contracting State

which the company paying the dividends is a resident and according to the laws

that State, but if the beneficial owner

the dividends is a resident

the other Contracting State, the tax so charged shall not exceed: (i) 10 per cent

the gross amount

the dividends, except as provided in sub-paragraph (a) (ii); (ii) 15 per cent

the gross amount

the dividends where those dividends are paid out

income (including gains) derived directly or indirectly from immovable property within the meaning

Article 6

by an investment vehicle which distributes most

this income annually and whose income from such immovable property is exempted from tax; (b) shall, notwithstanding the provisions

sub-paragraph (a), be exempt from tax in the Contracting State

which the company paying the dividends is a resident if the beneficial owner

the dividends is: (i) a company which is a resident

the other Contracting State and controls, directly or indirectly, at least 10 per cent

the voting power in the company paying the dividends (other than where the dividends are paid by an investment vehicle as mentioned in subparagraph (a) (ii)); or (ii) a pension scheme. This paragraph shall not affect the taxation

the company in respect

the profits out

which the dividends are paid.

(3)The term „dividends” as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as any other item which is subjected to the same taxation treatment as income from shares by the laws

the State

which the company making the distribution is a resident.

(4)The provisions

paragraphs

(1)and
(2)shall not apply if the beneficial owner

the dividends, being a resident

a Contracting State, carries on business in the other Contracting State

which the company paying the dividends is a resident through a permanent establishment situated therein and the holding in respect

which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions

Article 7shall apply.

(5)Where a company which is a resident

a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident

that other State or insofar as the holding in respect

which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly

profits or income arising in that other State.

(6)No relief shall be available under this Article if it was the main purpose or one

the main purposes

any person concerned with the creation or assignment

the shares or other rights in respect

which the dividend is paid to take advantage

this Article by means

that creation or assignment. ARTICLE 11 INTEREST

(1)Interest arising in a Contracting State and beneficially owned by a resident

the other Contracting State shall be taxable only in that other State.

(2)The term „interest” as used in this Article means income from debt-claims

every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. The term shall not include any item which is treated as a dividend under the provisions

Article 10

. Penalty charges for late payment shall not be regarded as interest for the purposes

this Article.

(3)The provisions

paragraph

(1)shall not apply if the beneficial owner

the interest, being a resident

a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, and the debt-claim in respect

which the interest is paid is effectively connected with such permanent establishment. In such case the provisions

Article 7shall apply.

(4)Where, by reason

a special relationship between the payer and the beneficial owner or between both

them and some other person, the amount

the interest paid exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence

such relationship, the provisions

this Article shall apply only to the last-mentioned amount. In such case, the excess part

the payments shall remain taxable according to the laws

each Contracting State, due regard being had to the other provisions

this Convention.

(5)No relief shall be available under this Article if it was the main purpose or one

the main purposes

any person concerned with the creation or assignment

the debt-claim in respect

which the interest is paid to take advantage

this Article by means

that creation or assignment. ARTICLE 12 ROYALTIES

(1)Royalties arising in a Contracting State and beneficially owned by a resident

the other Contracting State shall be taxable only in that other State.

(2)The term „royalties” as used in this Article means payments

any kind received as a consideration for the use

, or the right to use, any copyright

literary, artistic or scientific work including cinematograph films, any patent, trade mark, design or model, plan, secret formula or process, or for information (know-how) concerning industrial, commercial or scientific experience.

(3)The provisions

paragraph

(1)shall not apply if the beneficial owner

the royalties, being a resident

a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, and the right or property in respect

which the royalties are paid is effectively connected with such permanent establishment. In such case the provisions

Article 7shall apply.

(4)Where, by reason

a special relationship between the payer and the beneficial owner or between both

them and some other person, the amount

the royalties exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence

such relationship, the provisions

this Article shall apply only to the last-mentioned amount. In such case, the excess part

the payments shall remain taxable according to the laws

each Contracting State, due regard being had to the other provisions

this Convention.

(5)No relief shall be available under this Article if it was the main purpose or one

the main purposes

any person concerned with the creation or assignment

the rights in respect

which the royalties are paid to take advantage

this Article by means

that creation or assignment. ARTICLE 13 CAPITAL GAINS

(1)Gains derived by a resident

a Contracting State from the alienation

immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

(2)Gains derived by a resident

a Contracting State from the alienation

shares or comparable interests deriving more than 50 per cent

their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.

(3)Gains, other than those dealt with in paragraph
(2), from the alienation

movable property forming part

the business property

a permanent establishment which an enterprise

a Contracting State has in the other Contracting State, including such gains from the alienation

such a permanent establishment (alone or with the whole enterprise), may be taxed in that other State.

(4)Gains derived by a resident

a Contracting State from the alienation

ships or aircraft operated in international traffic by an enterprise

that State or movable property pertaining to the operation

such ships or aircraft shall be taxable only in that State.

(5)Gains from the alienation

any property other than that referred to in paragraphs

(1),
(2),
(3)and
(4), shall be taxable only in the Contracting State

which the alienator is a resident. ARTICLE 14 INCOME FROM EMPLOYMENT

(1)Subject to the provisions

Articles 15, 17, 18 and 20, salaries, wages and other similar remuneration derived by a resident

a Contracting State in respect

an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

(2)Notwithstanding the provisions

paragraph

(1), remuneration derived by a resident

a Contracting State in respect

an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (

  1. a)the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; and (
  2. b)the remuneration is paid by, or on behalf

, an employer who is not a resident

the other State; and (c) the remuneration is not borne by a permanent establishment which the employer has in the other State.

(3)Notwithstanding the preceding provisions

this Article, remuneration derived by a resident

a Contracting State in respect

an employment exercised aboard a ship or aircraft operated in international traffic shall be taxable only in that State. ARTICLE 15 DIRECTORS’ FEES Directors’ fees and other similar payments derived by a resident

a Contracting State in his capacity as a member

the board

directors or the supervisory board

a company which is a resident

the other Contracting State may be taxed in that other State. ARTICLE 16 ARTISTES AND SPORTSMEN

(1)Notwithstanding the provisions

Articles 7 and 14, income derived by a resident

a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

(2)Where income in respect

personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions

Articles 7 and 14, be taxed in the Contracting State in which the activities

the entertainer or sportsman are exercised.

(3)Notwithstanding the provisions

paragraphs

(1)and
(2), income mentioned in this Article shall be exempt from tax in the Contracting State in which the activity

the entertainer or sportsman is exercised provided the visit to that State is wholly or mainly supported by public funds

either Contracting State, or a political subdivision or local authority thereof. In such a case, the income shall be taxable only in the Contracting State

which the entertainer or sportsman is a resident. ARTICLE 17 PENSIONS Subject to the provisions

paragraph

(2)

Article 18

, pensions and other similar remuneration paid to an individual who is a resident

a Contracting State shall be taxable only in that State. ARTICLE 18 GOVERNMENT SERVICE

(1)(a) Salaries, wages and other similar remuneration paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect

services rendered to that State or subdivision or authority shall be taxable only in that State. (b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident

that State who: (i) is a national

that State; or (ii) did not become a resident

that State solely for the purpose

rendering the services; and is subject to tax in that State on such salaries, wages and other similar remuneration.

(2)(a) Notwithstanding the provisions

paragraph

(1), pensions and other similar remuneration paid by, or out

funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect

services rendered to that State or subdivision or authority shall be taxable only in that State. (b) However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident

, and a national

, that State.

(3)The provisions

Articles 14, 15, 16 and 17 shall apply to salaries, wages, pensions, and other similar remuneration in respect

services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. ARTICLE 19 STUDENTS Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident

the other Contracting State and who is present in the first-mentioned State solely for the purpose

his education or training receives for the purpose

his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State. ARTICLE 20 LECTURERS AND RESEARCHERS

(1)An individual who visits one

the Contracting States for a period not exceeding two years for the purpose

teaching or carrying out advanced study (including research) at a university, college or other recognised research institute or other establishment for higher education in that Contracting State and who was immediately before that visit a resident

the other Contracting State shall be exempt from tax in the first-mentioned Contracting State on any remuneration for such teaching or research for a period not exceeding two years from the date he first visits that Contracting State for such purpose.

(2)The preceding provisions

this Article shall not apply to remuneration which an individual receives for conducting research if the research is undertaken primarily for the private benefit

a specific person or persons. ARTICLE 21 OTHER INCOME

(1)Items

income beneficially owned by a resident

a Contracting State, wherever arising, which are not dealt with in the foregoing Articles

this Convention, other than income paid out

trusts or out

the estates

deceased persons in the course

administration, shall be taxable only in that State.

(2)The provisions

paragraph

(1)shall not apply to income, other than income from immovable property as defined in paragraph
(2)

Article 6

, if the beneficial owner

such income, being a resident

a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, and the right or property in respect

which the income is paid is effectively connected with such permanent establishment. In such case the provisions

Article 7shall apply.

(3)Where, by reason

a special relationship between the resident referred to in paragraph

(1)and some other person, or between both

them and some third person, the amount

the income referred to in that paragraph exceeds the amount (if any) which would have been agreed upon between them in the absence

such a relationship, the provisions

this Article shall apply only to the last-mentioned amount. In such a case, the excess part

the income shall remain taxable according to the laws

each Contracting State, due regard being had to the other applicable provisions

this Convention.

(4)No relief shall be available under this Article if it was the main purpose or one

the main purposes

any person concerned with the creation or assignment

the rights in respect

which the income is paid to take advantage

this Article by means

that creation or assignment. ARTICLE 22 ELIMINATION

DOUBLE TAXATION

(1)In Hungary, double taxation shall be eliminated as follows: (a) Where a resident

Hungary derives income which, in accordance with the provisions

this Convention, may be taxed in the United Kingdom, and is so taxed in the United Kingdom, Hungary shall, subject to the provisions

sub-paragraph (b) and paragraph

(4), exempt such income from tax. (b) Where a resident

Hungary derives items

income which, in accordance with the provisions

Article 10

, may be taxed in the United Kingdom, Hungary shall allow as a deduction from the tax on the income

that resident an amount equal to the tax paid in the United Kingdom. Such deduction shall not, however, exceed that part

the tax, as computed before the deduction is given, which is attributable to such items

income derived from the United Kingdom.

(2)Subject to the provisions

the law

the United Kingdom regarding the allowance as a credit against United Kingdom tax

tax payable in a territory outside the United Kingdom or, as the case may be, regarding the exemption from United Kingdom tax

a dividend arising in a territory outside the United Kingdom (which shall not affect the general principle hereof): (a) Hungarian tax payable under the laws

Hungary and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within Hungary (excluding in the case

a dividend, tax payable in respect

the profits out

which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Hungarian tax is computed; (b) a dividend derived by a company which is a resident

the United Kingdom from a company which is a resident

Hungary shall be exempted from tax in the United Kingdom; (c) in the case

a dividend not exempted from tax under sub-paragraph (b) above (because the conditions for exemption under the law

the United Kingdom are not met) which is paid by a company which is a resident

Hungary to a company which is a resident

the United Kingdom and which controls directly or indirectly at least 10 per cent

the voting power in the company paying the dividend, the credit mentioned in sub-paragraph (a) above shall also take into account the Hungarian tax payable by the company in respect

its profits out

which such dividend is paid.

(3)For the purposes

paragraphs

(1)and
(2), profits, income and capital gains owned by a resident

a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other State.

(4)Where in accordance with any provision

the Convention income derived by a resident

a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount

tax on the remaining income

such resident, take into account the exempted income. ARTICLE 23 MISCELLANEOUS PROVISIONS

(1)Where under any provision

this Convention any income or gains are relieved from tax in a Contracting State and, under the law in force in the other Contracting State a person, in respect

that income or those gains, is subject to tax by reference to the amount thereof which is remitted to or received in that other State and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the first-mentioned State shall apply only to so much

the income or gains as is taxed in the other State.

(2)Notwithstanding any other provisions

this Convention, where an enterprise

a Contracting State derives income from the other Contracting State, and that income is attributable to a permanent establishment which that enterprise has in a third jurisdiction, the tax benefits that would otherwise apply under the other provisions

the Convention will not apply to that income if the combined tax that is actually paid with respect to such income in the first-mentioned Contracting State and in the third jurisdiction is less than 60 per cent

the tax that would have been payable in the first-mentioned State if the income were earned in that Contracting State by the enterprise and were not attributable to the permanent establishment in the third jurisdiction. Any dividends, interest or royalties to which the provisions

this paragraph apply shall be subject to tax at a rate that shall not exceed 15 per cent

the gross amount thereof. Any other income to which the provisions

this paragraph apply will be subject to tax under the provisions

the domestic law

the other Contracting State, notwithstanding any other provision

the Convention. The provisions

this paragraph shall not apply if: (a) in the case

royalties, the royalties are received as compensation for the use

, or the right to use, intangible property produced or developed by the permanent establishment itself; or (b) in the case

any other income, the income derived from the other Contracting State is derived in connection with, or is incidental to, the active conduct

a trade or business carried on by the permanent establishment in the third jurisdiction (other than the business

making, managing or simply holding investments for the enterprise’s own account, unless these activities are banking or securities activities carried on by a bank or registered securities dealer). ARTICLE 24 NON-DISCRIMINATION

(1)Nationals

a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals

that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions

Article 1

, also apply to persons who are not residents

one or both

the Contracting States.

(2)The taxation on a permanent establishment which an enterprise

a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises

that other State carrying on the same activities.

(3)Except where the provisions

paragraph

(1)

Article 9, paragraph

(4)or
(5)

Article 11, paragraph

(4)or
(5)

Article 12, or paragraph

(3)or
(4)

Article 21

apply, interest, royalties and other disbursements paid by an enterprise

a Contracting State to a resident

the other Contracting State shall, for the purpose

determining the taxable profits

such enterprise, be deductible under the same conditions as if they had been paid to a resident

the first-mentioned State.

(4)Enterprises

a Contracting State, the capital

which is wholly or partly owned or controlled, directly or indirectly by one or more residents

the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises

the first-mentioned State are or may be subjected.

(5)Nothing contained in this Article shall be construed as obliging either Contracting State to grant to individuals not resident in that State any

the personal allowances, reliefs and reductions for tax purposes which are granted to individuals so resident or to its nationals. ARTICLE 25 MUTUAL AGREEMENT PROCEDURE

(1)Where a person considers that the actions

one or both

the Contracting States result or will result for him in taxation not in accordance with the provisions

this Convention, he may, irrespective

the remedies provided by the domestic law

those States, present his case to the competent authority

the Contracting State

which he is a resident or, if his case comes under paragraph

(1)

Article 24

, to that

the Contracting State

which he is a national.

(2)The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority

the other Contracting State, with a view to the avoidance

taxation which is not in accordance with this Convention. Any agreement reached shall be implemented notwithstanding any time limits or other procedural limitations in the domestic law

the Contracting States except such limitations as apply for the purposes

giving effect to such an agreement.

(3)The competent authorities

the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application

the Convention. They may also consult together for the elimination

double taxation in cases not provided for in the Convention.

(4)The competent authorities

the Contracting States may communicate with each other directly for the purpose

reaching an agreement in the sense

the preceding paragraphs. ARTICLE 26 EXCHANGE

INFORMATION

(1)The competent authorities

the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions

this Convention or to the administration or enforcement

the domestic laws concerning taxes

every kind and description imposed on behalf

the Contracting States or

their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to this Convention, in particular, to prevent fraud and to facilitate the administration

statutory provisions against tax avoidance. The exchange

information is not restricted by Articles 1 and 2.

(2)Any information received under paragraph
(1)by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws

that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection

, the enforcement or prosecution in respect

, or the determination

appeals in relation to the taxes referred to in paragraph

(1), or the oversight

the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

(3)In no case shall the provisions

paragraphs

(1)and
(2)be construed so as to impose on a Contracting State the obligation: (a) to carry out administrative measures at variance with the laws and administrative practice

that or

the other Contracting State; (b) to supply information which is not obtainable under the laws or in the normal course

the administration

that or

the other Contracting State; (c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure

which would be contrary to public policy.

(4)If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations

paragraph

(3)but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
(5)In no case shall the provisions

paragraph

(3)be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. ARTICLE 27 MEMBERS

DIPLOMATIC OR PERMANENT MISSIONS AND CONSULAR POSTS Nothing in this Convention shall affect the fiscal privileges

members

diplomatic or permanent missions or consular posts under the general rules

international law or under the provisions

special agreements. ARTICLE 28 ENTRY INTO FORCE

(1)Each

the Contracting States shall notify the other, through diplomatic channels,

the completion

the procedures required by its law for the bringing into force

this Convention. This Convention shall enter into force on the 30th day following the receipt

the later

these notifications and shall thereupon have effect: (a) in Hungary: (i) in respect

taxes withheld at source, to income derived on or after 1 st January in the calendar year next following that in which this Convention enters into force; (ii) in respect

other taxes on income, to taxes chargeable for any tax year beginning on or after 1st January in the calendar year next following that in which this Convention enters into force; (b) in the United Kingdom: (i) in respect

taxes withheld at source, to income derived on or after 1 st January in the calendar year next following that in which this Convention enters into force; (ii) subject to sub-paragraph (b)(i) above, in respect

income tax and capital gains tax, for any year

assessment beginning on or after 6th April in the calendar year next following that in which this Convention enters into force; (iii) in respect

corporation tax, for any financial year beginning on or after 1 st April in the calendar year next following that in which this Convention enters into force.

(2)The Convention between the Hungarian People’s Republic and the United Kingdom

Great Britain and Northern Ireland signed at Budapest on 28th November 1977 („the prior Convention”) shall cease to be effective from the dates upon which this Convention has effect in accordance with the provisions

paragraph

(1)and shall terminate on the last such date.
(3)Notwithstanding the entry into force

this Convention, an individual who is entitled to the benefits

Article 21

(Teachers)

the prior Convention at the time

entry into force

this Convention shall continue to be entitled to such benefits until such time as the individual would have ceased to be entitled to such benefits if the prior Convention had remained in force. ARTICLE 29 TERMINATION This Convention shall remain in force until terminated by one

the Contracting States. Either Contracting State may terminate this Convention, through diplomatic channels, by giving notice

termination at least six months before the end

any calendar year beginning after the expiry

five years from the date

entry into force

this Convention. In such event, this Convention shall cease to have effect: (a) in Hungary: (i) in respect

taxes withheld at source, to income derived on or after 1 st January in the calendar year next following that in which the notice is given; (ii) in respect

other taxes on income, to taxes chargeable for any tax year beginning on or after 1st January in the calendar year next following that in which the notice is given; (b) in the United Kingdom: (i) in respect

taxes withheld at source, to income derived on or after 1 st January in the calendar year next following that in which the notice is given; (ii) subject to sub-paragraph (b)(i) above, in respect

income tax and capital gains tax, for any year

assessment beginning on or after 6th April in the calendar year next following that in which the notice is given; (iii) in respect

corporation tax, for any financial year beginning on or after 1 st April in the calendar year next following that in which the notice is given. In witness whereof the undersigned, duly authorised thereto, have signed this Convention. Done in duplicate at Budapest this 7th day

September 2011, in the Hungarian and English languages, each text being equally authoritative. For the Republic

Hungary: For the United Kingdom

Great Britain and Northern Ireland: (signatures) PROTOCOL At the moment

signing the Convention for the avoidance

double taxation and the prevention

fiscal evasion with respect to taxes on income and on capital gains, this day concluded between Hungary and the United Kingdom, the undersigned have agreed upon the following provisions which shall be an integral part

the Convention:

(1)With reference to Articles 4 and 25: It is understood that in the absence

a mutual agreement referred to in paragraph

(4)

Article 4

, the competent authorities may nevertheless consult together for the elimination

double taxation as envisaged by paragraph

(3)

Article 25.

(2)With reference to Article 17: Having regard to the Hungarian Government’s intention to change the tax treatment

pensions, representatives

the two Governments will consult before 2013 to re-examine the provisions

Article 17to see if they still deal appropriately with any new tax treatment, and if necessary discuss an amending protocol to this Convention.

(3)With reference to paragraph
(1)

Article 25

: It is understood that access to the mutual agreement procedure is subject to the time limits specified in the domestic laws

the Contracting States. In witness whereof the undersigned, duly authorised thereto, have signed this Protocol. Done in duplicate at Budapest this 7th day

September 2011., in the Hungarian and English languages, each text being equally authoritative. For the Republic

Hungary: For the United Kingdom

Great Britain and Northern Ireland: (signatures)” 4. §

(1)Ez a törvény – a
(2)bekezdésben meghatározott kivétellel – a kihirdetését követő napon lép hatályba.
(2)A
  1. és
  2. § az Egyezmény
  3. Cikk
(1)bekezdésében meghatározott időpontban lép hatályba. *
(3)A Magyar Népköztársaság és Nagy-Britannia és Észak-Írország Egyesült Királyság között a kettős adóztatás elkerülésére a jövedelemadók területén Budapesten, az
  1. évi november hó
  2. napján aláírt egyezmény kihirdetéséről szóló
  3. évi
  4. törvényerejű rendelet (a továbbiakban: Tvr.) a Magyar Népköztársaság és Nagy-Britannia és Észak-Írország Egyesült Királyság között a kettős adóztatás elkerülésére a jövedelemadók területén Budapesten, az
  5. évi november hó
  6. napján aláírt egyezmény (a továbbiakban: korábbi egyezmény) megszűnésének az Egyezmény
  7. Cikkének
  8. bekezdésében meghatározott napján hatályát veszti. *
(4)Az Egyezmény, valamint a
  1. és
  2. § hatálybalépésének, továbbá a korábbi egyezmény megszűnésének és a Tvr. hatályvesztésének naptári napját a külpolitikáért felelős miniszter – annak ismertté válását követően – a Magyar Közlönyben haladéktalanul közzétett egyedi határozatával állapítja meg. *
(5)E törvény végrehajtásához szükséges intézkedésekről az adópolitikáért felelős miniszter gondoskodik. Vissza az oldal tetejére -->

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