Pursuant to Article 23(2) of the Convention, for the purpose of applying Article 23 to its Covered Tax Agreements, Hungary reserves the right for Article 23(1) not to apply to its Covered Tax Agreements.
Notification of Choice of Optional Provisions
Pursuant to Article 24(1) of the Convention, Hungary hereby chooses to apply Article 24(2).
Reservation Formulated for Scope of Arbitration
Pursuant to Article 28(2)(a) of the Convention, Hungary formulates the following reservations with respect to the scope of cases that shall be eligible for arbitration under the provisions of Part VI.
1. Hungary reserves the right to exclude from the scope of Part VI any case that falls within the scope of application of the Convention on the Elimination of Double Taxation in Connection with the Adjustment of Profits of Associated Enterprises (90/436/EEC) as amended or any subsequent regulation replacing, amending or updating these rules.
2. Hungary reserves the right to exclude from the scope of Part VI any case that falls within the scope of application of the COUNCIL DIRECTIVE (EU) 2017/1852 of 10 October 2017 on tax dispute resolution mechanisms in the European Union or any subsequent regulation replacing, amending or updating these rules.
3. Hungary reserves the right to exclude from the scope of Part VI - on a case-by-case basis - any case where penalties were imposed in relation to the adjusted income or capital for tax fraud, wilful default and gross negligence in accordance with Hungary’s domestic rules included in Section 41/J. paragraph (12) of the Act XXXVII of 2013 on Certain Rules of International Administrative Cooperation in Relation to Taxes and Other Public Duties. Any subsequent provision replacing, amending or updating these rules would also be included in this reservation. Hungary shall notify the Depositary of any such subsequent provision.
4. Hungary reserves the right to exclude from the scope of Part VI any case which the competent authorities of both Contracting Jurisdictions agree that are not suitable for arbitration. Such agreement shall be reached before the date on which arbitration proceedings would otherwise have begun and shall be notified to the person who presented the case.
5. Hungary reserves the right to exclude from the scope of Part VI any case which relates to questions of dispute relating to income or capital earned in a tax year commencing before 1 January 2018.
Notification of Choice of Optional Provisions
Pursuant to Article 35(3) of the Convention, solely for the purpose of its own application of Article 35(1)(b) and 5(b), Hungary hereby chooses to replace the reference to „taxable periods beginning on or after the expiration of a period” with a reference to „taxable periods beginning on or after 1 January of the next year beginning on or after the expiration of a period”.
Reservation
Pursuant to Article 35(6) of the Convention, Hungary reserves the right for Article 35(4) not to apply with respect to its Covered Tax Agreements.
Reservation
Pursuant to Article 36(2) of the Convention, Hungary reserves the right for Part VI to apply to a case presented to the competent authority of a Contracting Jurisdiction prior to the later of the dates on which the Convention enters into force for each of the Contracting Jurisdictions to the Covered Tax Agreement only to the extent that the competent authorities of both Contracting Jurisdictions agree that it will apply to that specific case.
