Hungary open to new double taxation avoidance treaty with US

Hungary is open to drafting a new double taxation avoidance treaty with the United States, Finance Minister Mihály Varga said after a meeting of the US-Hungary Business Council (USHBC) on Tuesday.

“The aim of the Hungarian government is to ensure a secure and competitive economic environment for taxpayers, which is why it strives to strengthen US-Hungarian cooperation on tax matters,” the ministry said in a statement.

The consequences of an earlier US decision to terminate the existing double taxation avoidance treaty with Hungary “are unfavourable for both countries”, Varga said.

Varga noted that some 1,700 US-owned companies employ around 107,000 people in Hungary. Bilateral trade between the two countries has reached an annual USD 8.3 billion, he added.

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