The Income and Capital Tax Treaty between Hungary and Switzerland was signed on 12 September 2013. After entering into force and becoming effective the new treaty will replace the existing Hungary – Switzerland Income and Capital Tax Treaty of 1981. The new agreement includes provisions on the exchange of information in accordance with the international standard as applicable at present.
Both countries have agreed that the withholding tax will be no more than 15% on gross dividend amounts. In case of a company holding a stake of at least 10% in the capital of the distributing company, the dividends will be exempt from withholding tax. No withholding tax will be imposed on dividends paid to the national banks of the two countries or to pension funds. Interest and royalty payments will be taxable in the state of residence only.
