On 1 July 2021, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) entered into force for Hungary. The agreement has come to into effect from the first day of the fourth month following the country depositing its instrument of ratification with the OECD which was 25 March 2021.
The provisions of the MLI will generally apply for a covered agreement from 1 January of the year following (1 January 2022) its entry into force in respect of withholding taxes, and for all other taxes with respect to taxable periods beginning on or after the expiration of a 6-month period following the date of entry into force.
