A new and comprehensive Double Taxation Convention was signed between the UK and the Republic of Hungary in Budapest on the 7 September 2011. The convention replaces the 1977 agreement by the general OECD Model Double Taxation Convention. The latest OECD provision on exchange of information is agreed.
Zero withholding rates for direct investment dividends and dividends paid to pension funds will be applied as per this agreement. A 10% rate for portfolio dividends and zero withholding tax on interest and royalties will also be applicable.
