Markets Wired

WASHINGTON — The U.S. Department of the Treasury today announced that on July 8, 2022, the United States notified Hungary of its termination of the Convention between the Government of the United States of America and the Government of the Hungarian People’s Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, in force since 1979 (the “Convention”).

In accordance with the Convention’s provisions on termination, termination will be effective on January 8, 2023.  However, as specified in the Convention, with respect to taxes withheld at source, the Convention shall cease to have effect on January 1, 2024.  In respect of other taxes, the Convention shall cease to have effect with respect to taxable periods beginning on or after January 1, 2024.