Hong Kong, Hungary DTA Comes Into Effect

It has been announced that the double tax agreement (DTA) between Hong Kong and Hungary, which was formally signed on May 12, 2010, came into effect on February 23, 2011, following the completion by both countries of their respective approval procedures.

The DTA sets out the allocation of taxing rights between the jurisdictions and the relief on tax rates on different types of passive income, and also incorporates the internationally-agreed Organisation for Economic Co-operation and Development standard on the exchange of tax information.