Hungary and UK sign Double Taxation Agreement

Hungarian State Secretary for Taxation and Financial Policy Affairs, András Kármán and the British Ambassador to Hungary, Greg Dorey signed a Double Taxation Agreement in Budapest. This agreement replaces the one signed in 1977 and reflects modern business developments between the two countries.

At the signing ceremony, Ambassador Dorey stated that this agreement would help contribute towards a stable business environment that can foster foreign investment at a time when trade between the UK and Hungary has reached record levels. State Secretary Kármán said that “the signing of this Treaty marks an important development in economic co-operation between our two countries”.

In his blog at the Embassy web site, Greg Dorey says the agreement protects against the risk of double taxation where the same income is taxable in either of our countries and it provides certainty of treatment for cross-border trade. Since bilateral trade has reached record levels and the citizens of our two countries increasingly contribute to both of our economies, this is good news.

He continues that the agreement also helps contribute towards a stable business environment which can foster foreign investment. And it protects governments’ taxing rights and against attempts to avoid or evade tax liability. So this is an important step in making sure that our citizens pay their fair share towards the costs of our governments and the important services they provide.

There are more than 2,500 Double Taxation Treaties world-wide and the UK has the largest network of treaties, covering over 100 countries.