2. Notwithstanding the provisions of Article 4, an individual who is a member of a diplomatic mission, consular post or permanent mission of a Contracting State which is situated in the other Contracting State or in a third State shall be deemed, for the purposes of this Convention, to be a resident of the sending State if:
a) in accordance with international law he is not liable to tax in the receiving Contracting State in respect of income from sources outside that State or on capital situated outside that State and
b) he is liable in the sending State to the same obligations in relation to tax on his total income or on capital as are residents of that State.
3. The Convention shall not apply to international organisations, to organs or officials thereof and to person who are members of a diplomatic mission, consular post or permanent mission of a third State, being present in a Contracting State and not treated in either Contracting State as residents in respect of taxes on income or on capital.
1. Each Contracting State shall notify to the other, through diplomatic channels, the completion of the procedures required by its law for the bringing into force of this Convention. The Convention shall enter into force 30 days after the date on which the latter of those notifications has been received.
2. The provisions of the Convention shall have effect:
a) in respect of taxes withheld at source on amounts paid or credited on or after the first day of January of the calendar year next following the entry into force of the Convention;
b) in respect of other taxes for taxation years beginning on or after the first day of January of the calendar year next following the entry into force of the Convention;
c) in respect to Article 26, to information that relates to taxation years or business years beginning on or after the first day of January of the calendar year next following the entry into force of the Convention.
3. The Convention between the Hungarian People’s Republic and the Swiss Confederation for the avoidance of double taxation with respect to taxes on income and on capital, with Protocol, signed at Budapest on 9 April 1981, shall terminate upon the entry into force of this Convention. However, the provisions of the first-mentioned Convention shall continue to have effect for taxable years and periods which expire before the time at which the provisions of this Convention shall be effective.
This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year. In such event, the Convention shall cease to have effect:
a) in respect of taxes withheld at source on amounts paid or credited on or after the first day of January of the calendar year next following that in which the notice was given;
b) in respect of other taxes for taxation years beginning on or after the first day of January of the calendar year next following that in which the notice was given.
IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Convention.
Done in duplicate at Budapest this 12th Day of September 2013, in the Hungarian, German and English languages, all three texts being equally authentic. In case there is any divergence of interpretation between the Hungarian and German texts, the English text shall prevail.
| For the Government of Hungary: | For the Swiss Federal Council: | |
| (signatures) | ||
Have agreed at the signing at Budapest on the 12th Day of September 2013 of the Convention between the two States for the avoidance of double taxation with respect to taxes on income and on capital upon the following provisions which shall form an integral part of the said Convention.
1. ad subparagraph h of paragraph 1 of Article 3
It is understood that the term „pension scheme” includes the following and any identical or substantially similar schemes which are established pursuant to legislation introduced after the date of signature of this Convention:
a) in Hungary, any pension schemes covered by
(i) the Act LXXXII of 1997 on Private Pensions and Private Pension Funds;
(ii) the Act XCVI of 1993 on Voluntary Mutual Insurance Funds;
(iii) the Act CXVII of 2007 on Occupational Pension and the Related Institutions;
b) in Switzerland, any pension schemes covered by
(i) the Federal Act on old age and survivors’ insurance, of 20 December 1946;
(ii) the Federal Act on disabled persons’ insurance of 19 June 1959;
(iii) the Federal Act on supplementary pensions in respect of old age, survivors’ and disabled persons’ insurance of 6 October 2006;
(iv) the Federal Act on old age, survivors’ and disabled persons’ insurance payable in respect of employment or self-employment of 25 June 1982, including the non-registered pension schemes which offer occupational pension plans and the forms of individual recognized pension schemes comparable with the occupational pension plans.
2. ad Article 4
In respect of paragraph 1 of Article 4, it is understood and confirmed that the term „resident of a Contracting State” includes in particular:
a) a pension scheme established in that State; and
b) an organization that is established and is operated exclusively for religious, charitable, scientific, cultural, sporting, or educational purposes (or for more than one of those purposes) and that is a resident of that State according to its laws, notwithstanding that all or part of its income or gains may be exempt from tax under the domestic law of that State.
3. ad Articles 10,11,12 and subparagraph b of paragraph 4 of Article 13
The provisions of Articles 10, 11, 12 and subparagraph b of paragraph 4 of Article 13 shall not apply if the main reason of the person or persons concerned with a transaction or a series of transactions related to the shares or other rights, the debt-claims or the rights in respect of which the dividend, interest or royalty is paid or in respect of which the alienation referred to in subparagraph b of paragraph 4 of Article 13 takes place is to obtain a tax advantage under Article 10, 11, 12 or subparagraph b of paragraph 4 of Article 13 by means of those transactions.
4. ad Article 18
It is understood that the term „pensions” as used in Article 18 does not only cover periodic payments, but also includes lump sum payments.
In case of Switzerland, the term „pensions” also includes payments from individual recognized pension schemes comparable with the occupational pension plans, in accordance with Article 82 of the Federal Act on old age, survivors’ and disabled persons’ insurance payable in respect of employment or self-employment of 25 June 1982.
In case of Hungary, the term „pensions” also includes payments from pension schemes provided they are retirement benefits.
5. ad Article 25
In the event that pursuant to an Agreement or Convention for the avoidance of double taxation concluded with another country after the date of signature of this Convention, Hungary agrees to include an arbitration provision in such an Agreement or Convention, the competent authorities of Switzerland and Hungary will start negotiations, as soon as possible, with a view to concluding an amending protocol aiming at inserting an arbitration provision into this Convention.
6. ad Article 26
a) It is understood that an exchange of information will only be requested once the requesting Contracting State has exhausted all regular sources of information available under the internal taxation procedure.
b) It is understood that the tax authorities of the requesting State shall provide the following information to the tax authorities of the requested State when making a request for information under Article 26:
(i) the identity of the person under examination or investigation;
(ii) the period of time for which the information is requested;
(iii) a statement of the information sought including its nature and the form in which the requesting State wishes to receive the information from the requested State;
(iv) the tax purpose for which the information is sought;
(v) to the extent known, the name and address of any person believed to be in possession of the requested information.
It is understood that the standard of „foreseeable relevance” is intended to provide for exchange of information in tax matters to the widest possible extent and, at the same time, to clarify that the Contracting States are not at liberty to engage in „fishing expeditions” or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer.
c) While subparagraph b) contains important procedural requirements that are intended to ensure that fishing expeditions do not occur, subparagraph b) nevertheless is not to be interpreted in order to frustrate effective exchange of information.
d) It is understood that Article 26 does not require the Contracting States to exchange information on an automatic or a spontaneous basis.
e) It is understood that in case of an exchange of information, the administrative procedural rules regarding taxpayers’ rights provided for in the requested Contracting State remain applicable. It is further understood that these provisions aim at guaranteeing the taxpayer a fair procedure and not at preventing or unduly delaying the exchange of information process.
Done in duplicate at Budapest this 12th Day of September 2013 in the Hungarian, German and English languages, all three texts being equally authentic. In case there is any divergence of interpretation between the Hungarian and German texts, the English text shall prevail.
| For the Government of Hungary: | For the Swiss Federal Council: | |
| (signatures)” | ||
4. § (1) Ez a törvény - a (2) és (3) bekezdésben meghatározott kivétellel - a kihirdetését követő napon lép hatályba.
(2) A 2. és a 3. § az Egyezmény 28. cikk (1) bekezdésében meghatározott időpontban lép hatályba.
(3) A (6) bekezdés az Egyezmény 28. cikk (3) bekezdésében meghatározott időpontban lép hatályba.
(4) Az Egyezmény, illetve a 2. és 3. §, valamint a (6) bekezdés hatálybalépésének naptári napját a külpolitikáért felelős miniszter - annak ismertté válását követően - a Magyar Közlönyben haladéktalanul közzétett közleményével állapítja meg.
(5) E törvény végrehajtásához szükséges intézkedésekről az adópolitikáért felelős miniszter gondoskodik.
(6) Hatályát veszti a Magyar Népköztársaság és a Svájci Államszövetség között a kettős adóztatás elkerülésére a jövedelem- és a vagyonadók területén Budapesten, az 1981. évi április hó 9. napján aláírt egyezmény kihirdetéséről szóló 1982. évi 23. törvényerejű rendelet.
