Hungary and Switzerland were signed new taxation agreement

18.09.2013

Current taxation agreement between Hungary and Switzerland was signed in 1981. So, it is time to enter into new agreement about exemption of double taxation, which meets trans-border standards, and it was done on September, 12.

Now in both countries dividend tax is 15 per cent, and in case when a company posses 10 per cent on amount of assets of subsidiary there is tax exempt.

Also in a framework of agreement is stipulated that neither in Hungary, nor in Switzerland tax of interest and royalties are not charged. Income from shares’ sale of company which has a real estate abroad is levied tax in a country where real estate is situated.

Considered agreement will enter in force after ratification in countries which were signed the agreement.

Based on:

http://www.sif.admin.ch

Expert’s opinion

Every new agreement makes a goal for a country. The highest value of such agreements is possibility to reduce all the indirect taxes: dividends, royalty, interests. And using of European respectable jurisdictions obviously adds weight in the eyes of counterparties.

Such jurisdictions require more attention: financial account pass, working with treaties, more respectable bank.

But changeable realities indicates that when it is due choice, professional support - this jurisdiction’s choice is legit. And Using of concluded agreements will provide to optimize your business structure.

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)