HUNGARY [ L.S.123.29 SUBSIDIARY LEGISLATION 123.29 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY ORDER 8th July, 1994 LEGAL NOTICE 75
this Order is Double Taxation Relief on Taxes on Income with the Republic
Hungary Order. 2. It is hereby declared: (a) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government
the Republic
Hungary with a view to affording relief from double taxation in relation to the following taxes imposed by the laws
the Republic
Hungary: (
HUNGARY SCHEDULE AGREEMENT BETWEEN MALTA AND THE REPUBLIC
HUNGARY FOR THE AVOIDANCE
DOUBLE TAXATION The Government
Malta and the Government
the Republic
Hungary desiring to conclude an Agreement for the Avoidance
Double Taxation and the prevention
fiscal evasion with respect to taxes on income, have agreed as follows: CHAPTER I Scope
the Agreement ARTICLE 1 Personal Scope This Agreement shall apply to persons who are residents
one or both
the Contracting States. ARTICLE 2 Taxes Covered
signature
this Agreement in addition to, or in place
, the existing taxes. The competent authorities
the Contracting States shall notify to each other any significant changes which have been made in their respective taxation laws.
this Article this Agreement shall not apply to tax paid or payable in Malta at the rate provided for in sub-article
article 56
the Income Tax Act. CHAPTER II Definitions ARTICLE 3 General Definitions
this Agreement, unless the context otherwise requires: DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY [ L.S.123.29 3 (a) the term "Hungary" when used in a geographical sense means the territory
the Republic
Hungary; and (b) the term "Malta", when used in a geographical sense, means the Island
Malta, the Island
Gozo and the other islands
the Maltese archipelago including the territorial waters thereof, and any area outside the territorial sea
Malta which, in accordance with international law, has been or may hereafter be designated, under the law
Malta concerning the Continental Shelf, as an area within which the rights
Malta with respect to the sea-bed and subsoil and their natural resources may be exercised; (
persons; (
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; (g) the term "nationals" means all individuals who are citizens
a Contracting State and all legal persons, partnerships, associations and other entities deriving their status as such from the laws in force in that Contracting State; (h) the term "international traffic" means any transport by a ship, aircraft or road transport vehicle operated by an enterprise
a Contracting State, except when the ship, aircraft or road transport vehicle is operated solely between places in the other Contracting State; (i) the term "competent authority" means: (i) in the case
Hungary, the Minister
Finance, or his authorised representative; (ii) in the case
Malta, the Minister responsible for finance or his authorised representative.
this Agreement by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the law
that State concerning the taxes to which this Agreement applies. ARTICLE 4 Resident
this Agreement, 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 or any other criterion
a similar nature. But this term does not include any person who is liable to tax in that State in respect only
income from sources in that State.
the provisions
paragraph
both Contracting States, then his status shall be determined as follows: (a) he shall be deemed to be a resident solely
the Contracting State in which he has a permanent home available to him; if he has a permanent 4 L.S.123.29] DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY home available to him in both States, he shall be deemed to be a resident solely
the Contracting State with which his personal and economic relations are closer (centre
vital interests); (b) if the State in which he has his centre
vital interests cannot be determined, or if he has no permanent home available to him in either State, he shall be deemed to be a resident solely
the Contracting State in which he has an habitual abode; (c) if he has an habitual abode in both States or in neither
them, he shall be deemed to be a resident solely
the Contracting State
which he is a national; (d) if he is a national
both States or
neither
them, the competent authorities
the Contracting States shall settle the question by mutual agreement.
the provisions
paragraph
both Contracting States, then it shall be deemed to be a resident solely
the Contracting State in which its place
effective management is situated. ARTICLE 5 Permanent Establishment
this Agreement the term "permanent establishment" means a fixed place
business through which the business
the enterprise is wholly or partly carried on.
management; (
fice; (
extraction
natural resources; (g) a building site or construction or installation or assembly project or supervisory activities in connection therewith, where such site, project or activity continues for more than nine
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; DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY [ L.S.123.29 5 (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.
a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if: (a) substantial equipment is in that other State being used by, for or under contract with the enterprise for more than nine
equipment referred to in sub-paragraph (a).
paragraphs
an independent status to whom paragraph
an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name
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
business, would not make this fixed place
business a permanent establishment under the provisions
that paragraph.
a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent
an independent status, where such persons are acting in the ordinary course
their business. However, when the activities
such an agent are devoted wholly or almost wholly on behalf
the enterprise, he shall not be considered an agent
an independent status if the transactions between the agent and the enterprise were not made under arm’s length conditions.
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. CHAPTER III Taxation
Income ARTICLE 6 Income from Immovable Property
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.
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
6 L.S.123.29] DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY general law respecting immovable property apply, usufruct
immovable property and rights to variable or fixed payments as consideration for the working
, or the right to work or to explore for, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be registered as immovable property.
paragraph
immovable property.
paragraphs
an enterprise and to income from immovable property used for the performance
independent personal services. ARTICLE 7 Business 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 thereof as is attributable to that permanent establishment.
paragraph
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 or with other enterprises with which it deals.
the profits
a permanent establishment, there shall be allowed as deductions expenses
the enterprise, being expenses which are incurred for the purposes
the permanent establishment (including executive and general administrative expenses so incurred) and which would be deductible if the permanent establishment were an independent entity which paid those expenses, whether incurred in the Contracting State in which the permanent establishment is situated or elsewhere.
an apportionment
the total profits
the enterprise to its various parts, nothing in paragraph
apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
any law
a Contracting State relating to the determination
the tax liability
a person, including the determination
such liability by the exercise
discretion or the making
an estimate by the competent authority
that State in cases in which, from the information available to the competent authority
that State, it is not possible or not practicable to ascertain the profits to be attributed to a permanent establishment, provided that that law shall be applied, so far as the information available to the competent authority permits, consistently with the principles
this Article.
the DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY [ L.S.123.29 7 mere purchase by that permanent establishment
goods or merchandise for the enterprise.
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.
this Article shall not affect the provisions
the law
a Contracting State regarding the taxation
profits from the business
insurance.
income which are dealt with separately in other Articles
this Agreement, then the provisions
those Articles shall not be affected by the provisions
this Article. ARTICLE 8 International Traffic
an enterprise
a Contracting State from the operation
ships, aircraft or road transport vehicles in international traffic shall be taxable only in that State.
paragraph
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.
any law
a Contracting State relating to the determination
such liability by the exercise
a discretion or the making
an estimate by the competent authority
that State in cases which, from the information available to the competent authority
that State, it is not possible or not practicable to determine the income to be attributed to an enterprise, provided that that law shall be applied, so far as the information available to the competent authority permits, consistently with the principles
this Article.
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 that 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 8 L.S.123.29] DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY 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 Agreement and the competent authorities
the Contracting States shall if necessary consult each other. ARTICLE 10 Dividends
a Contracting State to a resident
the other Contracting State may be taxed in that other State.
which the company paying the dividends is a resident and according to the laws
that State, but: (a) where the dividends are paid by a company resident
Hungary to a resident
Malta who is the beneficial owner thereof, the Hungarian tax so charged shall not exceed: (i) (ii) 5 per cent
the gross amount
the dividends if the beneficial owner is a company which holds directly at least 25%
the capital
the company paying the dividends; 15 per cent
the gross amount
the dividends in all other cases; (b) where the dividends are paid by a company which is a resident
Malta to a resident
Hungary who is the beneficial owner thereof Malta tax on the gross amount
the dividends shall not exceed that chargeable on the profits out
which the dividends are paid. This paragraph shall not affect the taxation
the company in respect
the profits out
which the dividends are paid.
the State
which the company making the distribution is a resident.
paragraphs
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, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect
which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such a case the provisions
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 or a fixed base 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 such other State. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY [ L.S.123.29 9 ARTICLE 11 Interest
the other Contracting State may be taxed in that other State.
that State, but if the recipient is the beneficial owner
the interest, the tax so charged shall not exceed ten
the gross amount
the interest.
paragraph
Hungary including local authorities thereof, the Central Bank or any financial institution controlled by the Hungarian Government, or interest derived on loans guaranteed by the Hungarian Government, shall be exempt from tax in Malta; (b) interest arising in Hungary and paid to the Malta Government, the Central Bank
Malta or the Malta Development Corporation shall be exempt from Hungarian tax.
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.
paragraphs
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, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect
which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions
that State. Where, however, the person paying the interest, whether he is a resident
a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
a special relationship between the payer and the beneficial owner or between both
them, and some other person, the amount
the interest paid having regard to the debt-claim for which it is paid, exceeds 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 Agreement. 10 L.S.123.29] DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY ARTICLE 12 Royalties
the other Contracting State may be taxed in that other State.
that State, but if the recipient is the beneficial owner
the royalties the tax so charged shall not exceed ten
the gross amount
the royalties.
, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trademark or other like property or right; (b) the use
, or the right to use, any industrial, commercial or scientific equipment; (c) the supply
scientific, technical, industrial or commercial knowledge or information; (d) the supply
any assistance that is ancillary and subsidiary to, and is furnished as a means
enabling the application or enjoyment
any such property or right as is mentioned in sub-paragraph (b), or any such knowledge or information as is mentioned in sub-paragraph (c); (e) the use
, or the right to use: (
the use or supply
any property or right referred to in this paragraph.
paragraphs
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, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect
which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions
that State. Where, however, the person paying the royalties, whether he is a resident
a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
a special relationship between the payer and the beneficial owner or between both
them and some other person, the amount
the royalties, having regard to the use, right or information for which they are paid, DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY [ L.S.123.29 11 exceeds 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 Agreement. ARTICLE 13 Alienation
Property
immovable property, as defined in paragraph
shares or comparable interests in a company, the assets
which consist wholly or principally
immovable property, may be taxed in the Contracting State in which the assets or the principal assets
the company are situated.
movable property forming part
the business property
a permanent establishment which an enterprise
a Contracting State has in the other Contracting State or
movable property pertaining to a fixed base available to a resident
a Contracting State in the other Contracting State for the purpose
performing independent personal services, including such income or gains from the alienation
such a permanent establishment (alone or together with the whole enterprise) or
such fixed base, may be taxed in the other State.
ships, aircraft and road transport vehicles operated in international traffic or movable property pertaining to the operation
such means
transportation shall be taxable only in the Contracting State
which the enterprise is a resident.
any property other than that referred to in paragraphs
which the alienator is a resident. ARTICLE 14 Independent Personal Services
a Contracting State in respect
professional services or other activities
an independent character shall be taxable only in that State. However, such income may be taxed in the other Contracting State in the following circumstances: (a) if he has a fixed base regularly available to him in the other Contracting State for the purpose
performing his activities (in which case only so much
the income as is attributable to that fixed base may be taxed in that other Contracting State); or (
that State and exceeds the equivalent in the currency
that State
five thousand U.S. dollars (US$ 5,000) during the calendar year, notwithstanding that his stay in that State is for a period or periods amounting in the aggregate to less than 183 days 12 L.S.123.29] DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY during that year.
physicians, dentists, lawyers, engineers, architects and accountants. ARTICLE 15 Dependent Personal Services
Articles 16, 18, 19, 20 and 21, 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.
paragraph
a Contracting State in respect
an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (
, an employer who is not a resident
the other State; and (c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
this Article, remuneration derived in respect
an employment exercised aboard a ship, aircraft or road transport vehicle operated in international traffic by an enterprise
a Contracting State may be taxed in that State. ARTICLE 16 Directors’ Fees Directors’ fees and similar payments derived by a resident
one
the Contracting States in his capacity as a member
the board
directors, or other comparable body however described,
a company which is a resident
the other Contracting State, may be taxed in that other State. ARTICLE 17 Artistes and Athletes
Articles 14 and 15, income derived by a resident
a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or musician or as an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.
personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions
Articles 7, 14 and 15, be taxed in the Contracting State in which the activities
the entertainer or athlete are exercised, if that person is directly or indirectly controlled by the entertainer or athlete.
paragraphs
this Article, DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY [ L.S.123.29 13 income mentioned in this Article shall be exempt from tax in the Contracting State in which the activity
the entertainer or athlete is exercised provided that this activity is supported in a considerable part out
public funds
this State or
the other State or the activity is exercised under a cultural agreement or arrangement between the Contracting States. ARTICLE 18 Pensions
paragraph
, pensions and other similar remuneration paid to a resident
a Contracting State in consideration
past employment shall be taxable only in that State.
paragraph
a Contracting State shall be taxable only in that State. ARTICLE 19 Government Service
services rendered to that State or subdivision or authority shall be taxable only in that State. (b) However, such 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 purposes
rendering the services.
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 pension shall be taxable only in the other Contracting State if the individual is a resident
, and a national
, that State.
Articles 15, 16 and 18 shall apply to remuneration and pensions in respect
services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof.
a Contracting State, out
funds exclusively supplied by that State to a specialist or volunteer seconded to the other Contracting State with the consent
that other State, such remuneration shall be deemed to have been paid by the first-mentioned State and shall be taxable only in that State. ARTICLE 20 Teachers
the other Contracting State and who is present in the first-mentioned State for a period not exceeding two years for the 14 L.S.123.29] DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY purpose
carrying out advanced study or research or for teaching at a university, college, school or other educational institution received for such work shall not be taxed in that State, provided that such remuneration is derived by him outside that State.
a specific person or persons. ARTICLE 21 Students and Trainees An individual who is resident
a Contracting State immediately before making a visit to the other Contracting State and is temporarily present in the other State solely: (
a grant, allowance or award for the primary purpose
study, research or training from the Government
either State or from a scientific, educational, religious, or charitable organisation or under a technical assistance programme entered into by the Government
either State, shall be exempt from tax in that other State on: (a) all remittances from abroad for the purposes
his maintenance, education, study, research or training; (b) the amount
such grant, allowance or award; and (c) any remuneration not exceeding the equivalent in the currency
that other State
two thousand U.S. dollars (US$ 2,000) in respect
services in that other State provided the services are performed in connection with his study, research or training or are necessary for the purpose
his maintenance. ARTICLE 22 Other Income
income
a resident
a Contracting State, wherever arising, not dealt with in the foregoing Articles
this Agreement shall be taxable only in that State.
paragraph
, if the recipient
such income, being a resident
a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect
which the income is paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions
DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY [ L.S.123.29 15 CHAPTER IV Elimination
Double Taxation ARTICLE 23 Elimination
Double Taxation
Hungary double taxation shall be eliminated as follows: (a) where a resident
Hungary derives income which, in accordance with the provisions
this Agreement may be taxed in Malta, Hungary shall, subject to the provisions
sub-paragraphs (
Hungary derives items
income which, in accordance with the provisions
, may be taxed in Malta, Hungary shall allow as a deduction from the tax on the income
that resident an amount equal to the tax paid in Malta. 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 Malta; and (c) where in accordance with any provision
this Agreement income derived by a resident
Hungary is exempt from tax in Hungary, Hungary may nevertheless, in calculating the amount
tax on the remaining income
such resident, take into account the exempted income.
Malta, double taxation shall be eliminated as follows: Subject to the provisions
the law
Malta regarding the allowance
a credit against Malta tax in respect
foreign tax, where, in accordance with the provisions
this Agreement, there is included in a Malta assessment income from sources within Hungary, the Hungarian tax on such income shall be allowed as a credit against the relative Malta tax payable thereon.
allowance as a credit the tax payable in Hungary or Malta, as the context requires, shall be deemed to include the tax which is otherwise payable in a Contracting State but has been reduced or waived by that State under its legal provisions for tax incentives.
the income as is remitted to or received in the other State. CHAPTER V Special Provisions ARTICLE 24
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 16 L.S.123.29] DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY nationals
that other State in the same circumstances are or may be subjected. This provision shall, notwithstanding the provisions
Article l, also apply to persons who are not residents
one or both
the Contracting States.
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.
paragraph
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.
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 State to any taxation or any requirement connected therewith which is more burdensome than the taxation and connected requirements to which other similar enterprises
that firstmentioned State are or may be subjected.
the other Contracting State any personal allowances, reliefs and reductions for tax purposes on account
civil status, family responsibilities or any other personal circumstances which it grants to its own residents.
this Article shall, notwithstanding the provisions
, apply to taxes
every kind and description. ARTICLE 25 Mutual Agreement Procedure
one or both
the Contracting States result or will result for him in taxation not in accordance with the provisions
this Agreement, 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
, to that
the Contracting State
which he is a national. The case must be presented within three years from the first notification
the action resulting in taxation not in accordance with the provisions
the Agreement.
the other Contracting State, with a view to the avoidance
taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law
the Contracting States.
the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application
the Agreement. They may also consult together for the elimination
double taxation in cases not provided for in the Agreement.
the Contracting States may communicate with each other directly for the purpose
reaching an agreement in the sense
the DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY [ L.S.123.29 17 preceding paragraphs. ARTICLE 26 Exchange
Information
the Contracting States shall exchange such information as is necessary for carrying out the provisions
this Agreement or
the domestic laws
the Contracting States concerning taxes covered by the Agreement insofar as the taxation thereunder is not contrary to the Agreement. The exchange
information is not restricted by Article 1. Any information received 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) involved in the assessment or collection
, the enforcement or prosecution in respect
, or the determination
appeals in relation to, the taxes covered by the Agreement. 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.
paragraph
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 (ordre public). ARTICLE 27 Diplomatic and Consular
ficials Nothing in this Agreement shall affect the fiscal privileges
diplomatic agents or consular
ficials under the general rules
international law or under the provisions
special agreements. CHAPTER VI Final Provisions ARTICLE 28 Entry into Force
the Contracting States shall notify each other that the constitutional requirements for the entry into force
this Agreement have been complied with.
the notifications referred to in paragraph
taxes withheld at source, to amounts
income 18 L.S.123.29] (ii) DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY derived on or after 1 January in the calendar year next following the year in which the Agreement enters into force; and in respect
other taxes on income, to such taxes chargeable for any taxable year beginning on or after 1 January in the calendar year next following the year in which the Agreement enters into force; (b) in Malta: in respect
taxes for any year
assessment beginning on or after 1 January in the second calendar year following the year in which this Agreement enters into force. ARTICLE 29 Termination This Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice
termination at least six months before the end
any calendar year beginning after the expiration
a period
five years from the date
its entry into force. In such event, the Agreement shall cease to have effect: (a) in Hungary: (i) (ii) in respect
taxes withheld at source, to amounts
income derived on or after 1 January in the calendar year next following the year in which the notice is given; and in respect
other taxes on income, to such taxes chargeable for any taxable year beginning on or after 1 January in the calendar year next following the year in which the notice is given; (b) in Malta: in respect
taxes for any year
assessment beginning on or after 1 January in the second calendar year following the year in which the notice is given. IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Agreement. DONE in duplicate at Budapest this 6th day
August, 1991, in the English language. Joseph Cassar FOR THE GOVERNMENT
MALTA Török Béla FOR THE GOVERNMENT
THE REPUBLIC
HUNGARY DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
HUNGARY [ L.S.123.29 19 PROTOCOL At the signing today
the Agreement between the Government
Malta and the Government
the Republic
Hungary for the avoidance
double taxation with respect to taxes on income the undersigned have agreed upon the following provisions which shall form an integral part
the Agreement:
article 56
the Income Tax Act provides that the tax upon the chargeable income
any person engaged in the production
petroleum produced in Malta shall be at the rate
fifty cents on every lira
such part
his chargeable income as is derived therefrom. Under the law in force in Malta, no double taxation arrangement shall have effect in so far as it applies to tax paid or payable in respect
gains or profits chargeable at the rate provided for in sub-article
article 56
the Act.
business" includes also a place
production.
the building site, construction, installation or assembly project. No profit can be attributed to the permanent establishment by reason
delivery
goods or merchandise, machinery or equipment notwithstanding that the delivery was carried out by the enterprise or by a third person.
ships or aircraft or road transport vehicles includes the activity
agencies
international transport enterprises and other auxiliary activities
these enterprises namely transport by bus between a town and the airport in so far as these above-mentioned activities are closely connected with international transport.
it is understood that in case there will be a change in the imputation system presently applied in Malta the competent authorities
the Contracting States will consult each other in order to agree on the taxation
dividends in view
avoiding double taxation. IN WITNESS whereof the undersigned, duly authorised thereto, have signed this Protocol. DONE in duplicate at Budapest this 6th day
August, 1991, in the English language. Joseph Cassar FOR THE GOVERNMENT
MALTA Török Béla FOR THE GOVERNMENT
THE REPUBLIC
HUNGARY
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.