Connect with us

Hi, what are you looking for?

Top News

Hungary is open to a new Hungarian-US agreement to avoid double taxation

Hungary is open to a new Hungarian-US agreement to avoid double taxation

Mihaly Varga noted after the US-Hungarian Business Council (USHBC) meeting that the Hungarian government’s goal is to provide a safe and competitive economic environment for taxpayers, and therefore it strives to strengthen US-Hungarian tax cooperation. The Minister of Finance stressed that the consequences of terminating the previous agreement by the American side are not in the interest of the two countries.

The United States is the largest investor in Hungary outside the European Union.
Image: Shutterstock

Speaking about the relations between the two countries, the minister said:

The United States is the largest investor in Hungary outside the European Union.

Its share of the total investment portfolio is close to 9 percent. So far, the Hungarian government has concluded strategic cooperation agreements with 94 companies, including 14 American companies. next to

  • 1,700 American companies
  • It employs approximately 107,000 people,
  • The volume of bilateral trade will increase from 7.1 to 8.3 billion dollars in 2022, or by 16 percent.

Thus the record for binary trade was broken.

The American-Hungarian Business Council, founded in New York in 2016, organized a US-Hungarian economic summit this year, aimed at bringing new investors to our country in addition to existing investors.

What does termination of a double taxation agreement mean?

On July 8, 2022, the United States notified Hungary through diplomatic channels that it would unilaterally terminate the double taxation agreement between the United States and Hungary. However, its tax assessment provisions can still be applied until December 31, 2023.

To withhold tax income For amounts paid or credited on or after January 1, 2024, and for other taxes, the provisions of the Agreement will expire for tax periods beginning on or after January 1, 2024.

See also  Hungary is one of the most miserable countries in the world

All this a Personal income tax From this point of view, this means that from 1 January 2024, both countries will be entitled to tax income from abroad based on their own legislation, and income from the USA must be treated as income from a non-treaty country.

Corporate tax In the case of a specified date, income resulting from transactions between the US and Hungarian parties must also be treated as if it came from a non-treaty country. Therefore, the United States can deduct withholding tax at the rate in accordance with its domestic rules from U.S. withholding tax income (for example, dividends and interest).

Double taxation is coming, you should think twice before holding US stocks

Unless there is an unexpected development, anyone who owns US stocks and makes profits there will have to pay more taxes next year. The obligation to pay taxes cannot be completely avoided, but investors have more options to pay only the minimum.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Top News

In a harrowing incident that has shaken the community of Lewiston, Maine, a series of shootings on Wednesday evening resulted in a tragic loss...

Top News

President Joe Biden’s abrupt departure from a speech on the U.S. economy at the White House on Monday sent a ripple of speculation and...

Top News

Given the differences in styles with next-generation consoles, the so-called “console war” between Sony and Microsoft is arguably moot. Most console players, however, will...

World

Chinese scientists have discovered a little-known type of ore containing a rare earth metal highly sought after for its superconducting properties. The ore, called...

Copyright © 2024 Campus Lately.