The Taipei Representative Office in Hungary and the Hungarian
Trade Office in Taipei desiring to conclude an Agreement for the
avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income,

Have agreed as follows:

Article 1
PERSONS COVERED
This Agreement shall apply to persons who are residents of one
or both of the territories.

Article 2
TAXES COVERED
1.This Agreement shall apply to taxes on income imposed in
either of the territories, irrespective of the manner in which
they are levied.
2.There shall be regarded as taxes on income all taxes imposed
on total income, or on elements of income, including taxes on
gains from the alienation of movable or immovable property,
taxes on the total amount of wages or salaries paid by
enterprises, as well as taxes on capital appreciation.
3.The existing taxes to which the Agreement shall apply are in
particular:
(a)in the territory in which the taxation laws administered by
the Ministry of Finance, Taipei are applied:
(i)the profit-seeking enterprise income tax;
(ii)the individual consolidated income tax;
(iii)the income basic tax;
(b)in the territory in which the taxation laws administered by
the Hungarian Ministry of Finance are applied:
(i)the personal income tax;
(ii)the corporate tax.
4.The Agreement shall apply also to any identical or
substantially similar taxes which are imposed in either
territory after the date of signature of this Agreement in
addition to, or in place of, the existing taxes. The competent
authorities of the territories shall notify each other of any
significant changes which have been made in their taxation
laws of the respective territories.

Article 3
GENERAL DEFINITIONS
1.For the purposes of this Agreement, unless the context
otherwise requires:
(a)the term "territory" means the territory referred to in
subparagraph 3(a) or 3(b) of Article 2 of this Agreement, as
the context requires, and the terms "other territory" and
"territories" shall be construed accordingly;
(b)the term “person” includes an individual, a company and
any other body of persons;
(c)the term “company” means any body corporate or any entity
which is treated as a body corporate for tax purposes;
(d)the term “enterprise” applies to the carrying on of any
business;
(e)the terms “enterprise of a territory” and “enterprise of
the other territory” mean respectively an enterprise
carried on by a resident of a territory and an enterprise
carried on by a resident of the other territory;
(f)the term “international traffic” means any transport by a
ship or aircraft operated by an enterprise of a territory,
except when the ship or aircraft is operated solely between
places in the other territory;
(g)the term “competent authority” means:
(i)in the case of the territory in which the taxation laws
administered by the Ministry of Finance, Taipei are
applied, the Minister of Finance or his authorised
representatives;
(ii)in the case of the territory in which the taxation laws
administered by the Hungarian Ministry of Finance are
applied, the Minister of Finance or his authorised
representatives;
2.As regards the application of this Agreement at any time in a
territory, any term not defined therein shall, unless the
context otherwise requires, have the meaning that it has at
that time under the laws of that territory for the purposes of
the taxes to which this Agreement applies, any meaning under
the applicable tax laws of that territory prevailing over a
meaning given to the term under other laws of that territory.

Article 4
RESIDENT
1.For the purposes of this Agreement, the term “resident of a
territory” means any person who, under the laws of that
territory, is liable to tax therein by reason of his domicile,
residence, place of management, place of incorporation or any
other criterion of a similar nature, and also includes that
territory and any political subdivision or local authority
thereof.
2.A person is not a resident of a territory for the purposes of
this Agreement if that person is liable to tax in that
territory in respect only of income from sources in that
territory, provided that this paragraph shall not apply to
individuals who are residents of the territory referred to in
subparagraph 3 (a) of Article 2, as long as resident
individuals are taxed only in respect of income from sources
in that territory.
3.Where by reason of the provisions of paragraph 1 an individual
is a resident of both territories, then his status shall be
determined as follows:
(a)he shall be deemed to be a resident only of the territory in
which he has a permanent home available to him; if he has a
permanent home available to him in both territories, he
shall be deemed to be a resident only of the territory with
which his personal and economic relations are closer (centre
of vital interests);
(b)if the territory in which he has his centre of vital
interests cannot be determined, or if he has not a permanent
home available to him in either territory, he shall be
deemed to be a resident only of the territory in which he
has an habitual abode;
(c)if he has an habitual abode in both territories or in
neither of them, the competent authorities of the
territories shall settle the question by mutual agreement.
4.Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both territories,
then it shall be deemed to be a resident only of the territory
in which it is incorporated.

Article 5
PERMANENT ESTABLISHMENT
1.For the purposes of this Agreement, the term “permanent
establishment” means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
2.The term “permanent establishment” includes especially:
(a)a place of management;
(b)a branch;
(c)an office;
(d)a factory;
(e)a workshop; and
(f)a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources.
3.A building site or construction or assembly or installation
project constitutes a permanent establishment only if it lasts
more than twelve months.
4.An enterprise of a territory shall be deemed to have a
permanent establishment in the other territory if:
(a)it carries on supervisory activities in that other territory
for more than twelve months in connection with a building
site or construction or assembly or installation project
which is being undertaken in that other territory;
(b)it furnishes services, including consultancy services, but
only where activities of that nature continue, for the same
or a connected project, through employees or other personnel
or persons engaged by the enterprise for such purpose in the
other territory for a period or periods aggregating more
than twelve months within any fifteen-month period.
5.Notwithstanding the preceding provisions of this Article, the
term “permanent establishment” shall be deemed not to
include:
(a)the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to the
enterprise;
(b)the maintenance of a stock of goods or merchandise belonging
to the enterprise solely for the purpose of storage, display
or delivery;
(c)the maintenance of a stock of goods or merchandise belonging
to the enterprise solely for the purpose of processing by
another enterprise;
(d)the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of collecting
information, for the enterprise;
(e)the maintenance of a fixed place of business solely for the
purpose of carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;
(f)the maintenance of a fixed place of business solely for any
combination of activities mentioned in subparagraphs (a) to
(e), provided that the overall activity of the fixed place
of business resulting from this combination is of a
preparatory or auxiliary character.
6.Notwithstanding the provisions of paragraphs 1 and 2, where a
person – other than an agent of an independent status to whom
paragraph 7 applies – is acting on behalf of an enterprise
and has, and habitually exercises, in a territory an authority
to conclude contracts in the name of the enterprise, that
enterprise shall be deemed to have a permanent establishment
in that territory in respect of any activities which that
person undertakes for the enterprise, unless the activities of
such person are limited to those mentioned in paragraph 5
which, if exercised through a fixed place of business, would
not make this fixed place of business a permanent
establishment under the provisions of that paragraph.
7.An enterprise shall not be deemed to have a permanent
establishment in a territory merely because it carries on
business in that territory through a broker, general
commission agent or any other agent of an independent status,
provided that such persons are acting in the ordinary course
of their business.
8.The fact that a company which is a resident of a territory
controls or is controlled by a company which is a resident of
the other territory, or which carries on business in that
other territory (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a
permanent establishment of the other.

Article 6
INCOME FROM IMMOVABLE PROPERTY
1.Income derived by a resident of a territory from immovable
property (including income from agriculture or forestry)
situated in the other territory may be taxed in that other
territory.
2.The term “immovable property” shall have the meaning which
it has under the law of the territory in which the property in
question is situated. The term shall in any case include
property accessory to immovable property, livestock and
equipment used in agriculture and forestry, rights to which
the provisions of general law respecting landed property
apply, usufruct of immovable property and rights to variable
or fixed payments as consideration for the working of, or the
right to work, mineral deposits, sources and other natural
resources; ships, boats and aircraft shall not be regarded as
immovable property.
3.The provisions of paragraph 1 shall apply to income derived
from the direct use, letting or use in any other form of
immovable property.
4.The provisions of paragraphs 1 and 3 shall also apply to the
income from immovable property of an enterprise and to income
from immovable property used for the performance of
independent personal services.

Article 7
BUSINESS PROFITS
1.The profits of an enterprise of a territory shall be taxable
only in that territory unless the enterprise carries on
business in the other territory through a permanent
establishment situated therein. If the enterprise carries on
business as aforesaid, the profits of the enterprise may be
taxed in the other territory but only so much of them as is
attributable to that permanent establishment.
2.Subject to the provisions of paragraph 3, where an enterprise
of a territory carries on business in the other territory
through a permanent establishment situated therein, there
shall in each territory be attributed to that permanent
establishment the profits which it might be expected to make
if it were a distinct and separate enterprise engaged in the
same or similar activities under the same or similar
conditions and dealing wholly independently with the
enterprise of which it is a permanent establishment.
3.In determining the profits of a permanent establishment, there
shall be allowed as deductions expenses which are incurred for
the purposes of the permanent establishment, including
executive and general administrative expenses so incurred,
whether in the territory in which the permanent establishment
is situated or elsewhere.
4.Insofar as it has been customary in a territory to determine
the profits to be attributed to a permanent establishment on
the basis of an apportionment of the total profits of the
enterprise to its various parts, nothing in paragraph 2 shall
preclude that territory from determining the profits to be
taxed by such an apportionment as may be customary; the method
of apportionment adopted shall, however, be such that the
result shall be in accordance with the principles contained in
this Article.
5.No profits shall be attributed to a permanent establishment by
reason of the mere purchase by that permanent establishment of
goods or merchandise for the enterprise.
6.For the purposes of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be
determined by the same method year by year unless there is
good and sufficient reason to the contrary.
7.Where profits include items of income which are dealt with
separately in other Articles of this Agreement, then the
provisions of those Articles shall not be affected by the
provisions of this Article.

Article 8
SHIPPING AND AIR TRANSPORT
1.Profits of an enterprise of a territory from the operation of
ships or aircraft in international traffic shall be taxable
only in that territory.
2.For the purposes of this Article, profits from the operation
of ships or aircraft in international traffic include:
(a)profits from the rental on a full (time or voyage) basis or
a bareboat basis of ships or aircraft; and
(b)profits from the use, maintenance or rental of containers
(including trailers and related equipment for the transport
of containers) used for the transport of goods or
merchandise;
where such rental or such use, maintenance or rental, as the
case may be, is incidental to the operation of ships or
aircraft in international traffic.
3.The provisions of paragraph 1 shall also apply to profits from
the participation in a pool, a joint business or an
international operating agency, but only to so much of the
profits so derived as is attributable to the participant in
proportion to its share in the joint operation.

Article 9
ASSOCIATED ENTERPRISES
1.Where
(a)an enterprise of a territory participates directly or
indirectly in the management, control or capital of an
enterprise of the other territory, or
(b)the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
territory and an enterprise of the other territory,
and in either case conditions are made or imposed between the
two enterprises in their commercial or financial relations
which differ from those which would be made between
independent enterprises, then any profits which would, but for
those conditions, have accrued to one of the enterprises, but,
by reason of those conditions, have not so accrued, may be
included in the profits of that enterprise and taxed
accordingly.
2.Where a territory includes in the profits of an enterprise of
that territory – and taxes accordingly – profits on which an
enterprise of the other territory has been charged to tax in
that other territory and the profits so included are profits
which would have accrued to the enterprise of the
first-mentioned territory if the conditions made between the
two enterprises had been those which would have been made
between independent enterprises, then that other territory
shall make an appropriate adjustment to the amount of the tax
charged therein on those profits if that other territory
considers the adjustment justified. In determining such
adjustment, due regard shall be had to the other provisions of
this Agreement and the competent authorities of the
territories shall if necessary consult each other.

Article 10
DIVIDENDS
1.Dividends paid by a company which is a resident of a territory
to a resident of the other territory may be taxed in that
other territory.
2.However, such dividends may also be taxed in the territory of
which the company paying the dividends is a resident and
according to the laws of that territory, but if the beneficial
owner of the dividends is a resident of the other territory,
the tax so charged shall not exceed 10 per cent of the gross
amount of the dividends.
This paragraph shall not affect the taxation of the company in
respect of the profits out of which the dividends are paid.
The competent authorities of the territories may by mutual
agreement settle the mode of application of these limitations.
3.The term "dividends" as used in this Article means income from
shares, “jouissance” shares or “jouissance” rights, mining
shares, founders’ shares or other rights, not being
debt-claims, participating in profits, as well as income from
other corporate rights which is subjected to the same taxation
treatment as income from shares by the laws of the territory
of which the company making the distribution is a resident.
4.The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the dividends, being a resident of a
territory, carries on business in the other territory of which
the company paying the dividends is a resident, through a
permanent establishment situated therein or performs in that
other territory independent personal services from a fixed
base situated therein, and the holding in respect of which the
dividends are paid is effectively connected with such
permanent establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case may be,
shall apply.
5.Where a company which is a resident of a territory derives
profits or income from the other territory, that other
territory may not impose any tax on the dividends paid by the
company, except insofar as such dividends are paid to a
resident of that other territory or insofar as the holding in
respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base
situated in that other territory, nor subject the company's
undistributed profits to a tax on the company's undistributed
profits, even if the dividends paid or the undistributed
profits consist wholly or partly of profits or income arising
in such other territory.

Article 11
INTEREST
1.Interest arising in a territory and paid to a resident of the
other territory may be taxed in that other territory.
2.However, such interest may also be taxed in the territory in
which it arises and according to the laws in force in that
territory, but if the beneficial owner of the interest is a
resident of the other territory, the tax so charged shall not
exceed 10 per cent of the gross amount of the interest.
The competent authorities of the territories may by mutual
agreement settle the mode of application of these limitations.
3.Notwithstanding paragraph 2, interest arising in a territory
shall be exempt from tax in that territory if it is paid:
(a)to the authority administering the other territory, a
political subdivision or local authority or the Central Bank
therof, or any financial institution wholly owned or
controlled by the other territory in relation to any loan,
debt-claim or credit granted by any such bodies;
(b)in respect of a loan granted, guaranteed or insured or a
credit extended, guaranteed or insured by an approved
instrumentality of the other territory which aims at
promoting export, or under a scheme organised by an
authority administering a territory or a political
subdivision or a local authority in order to promote the
export;
(c)on loans made between banks.
4.The term “interest” as used in this Article means income
from debt-claims of every kind, whether or not secured by
mortgage and whether or not carrying a right to participate in
the debtor's profits, and in particular, income from
government securities and income from bonds or debentures,
including premiums and prizes attaching to such securities,
bonds or debentures. However, the term "interest" shall not
include for the purpose of this Article income dealt with in
Article 10 and penalty charges for late payment, interest on
commercial debt-claims resulting from deferred payments for
goods, merchandise or services supplied by an enterprise.
5.The provisions of paragraphs 1, 2 and 3 shall not apply if the
beneficial owner of the interest, being a resident of a
territory, carries on business in the other territory in which
the interest arises, through a permanent establishment
situated therein, or performs in that other territory
independent personal services from a fixed base situated
therein, and the debt-claim in respect of which the interest
is paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of
Article 7 or Article 14, as the case may be, shall apply.
6.Interest shall be deemed to arise in a territory when the
payer is a resident of that territory. Where, however, the
person paying the interest, whether he is a resident of a
territory or not, has in a territory a permanent establishment
or a fixed base in connection with which the indebtedness on
which the interest is paid was incurred, and such interest is
borne by such permanent establishment or fixed base, then such
interest shall be deemed to arise in the territory in which
the permanent establishment or fixed base is situated.
7.Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to the
debt-claim for which it is paid, exceeds the amount which
would have been agreed upon by the payer and the beneficial
owner in the absence of such relationship, the provisions of
this Article shall apply only to the last-mentioned amount. In
such case, the excess part of the payments shall remain
taxable according to the laws of each territory, due regard
being had to the other provisions of this Agreement.

Article 12
ROYALTIES
1.Royalties arising in a territory and paid to a resident of the
other territory may be taxed in that other territory.
2.However, such royalties may also be taxed in the territory in
which they arise and according to the laws of that territory,
but if the beneficial owner of the royalties is a resident of
the other territory, the tax so charged shall not exceed 10
per cent of the gross amount of the royalties.
The competent authorities of the territories may by mutual
agreement settle the mode of application of these limitations.
3.The term “royalties” as used in this Article means payments
of any kind received as a consideration for the use of, or the
right to use, any copyright of literary, artistic or
scientific work including cinematograph films and films or
tapes for television or radio broadcasting, any patent, trade
mark, design or model, plan, secret formula or process, or for
information concerning industrial, commercial or scientific
experience.
4.The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the royalties, being a resident of a
territory, carries on business in the other territory in which
the royalties arise, through a permanent establishment
situated therein, or performs in that other territory
independent personal services from a fixed base situated
therein, and the right or property in respect of which the
royalties are paid is effectively connected with such
permanent establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case may be,
shall apply.
5.Royalties shall be deemed to arise in a territory when the
payer is a resident of that territory. Where, however, the
person paying the royalties, whether he is a resident of a
territory or not, has in a territory a permanent establishment
or a fixed base in connection with which the liability to pay
the royalties was incurred, and such royalties are borne by
such permanent establishment or fixed base, then such
royalties shall be deemed to arise in the territory in which
the permanent establishment or fixed base is situated.
6.Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the royalties, having regard to
the use, right or information for which they are paid, exceeds
the amount which would have been agreed upon by the payer and
the beneficial owner in the absence of such relationship, the
provisions of this Article shall apply only to the
last-mentioned amount. In such case, the excess part of the
payments shall remain taxable according to the laws of each
territory, due regard being had to the other provisions of
this Agreement.

Article 13
CAPITAL GAINS
1.Gains derived by a resident of a territory from the alienation
of immovable property referred to in Article 6 and situated in
the other territory may be taxed in that other territory.
2.Gains, other than those dealt with in paragraph 4 of this
Article, from the alienation of movable property forming part
of the business property of a permanent establishment which an
enterprise of a territory has in the other territory or of
movable property pertaining to a fixed base available to a
resident of a territory in the other territory for the purpose
of performing independent personal services, including such
gains from the alienation of such a permanent establishment
(alone or with the whole enterprise) or of such fixed base,
may be taxed in that other territory.
3.Gains derived by an enterprise of a territory from the
alienation of ships or aircraft operated in international
traffic or movable property pertaining to the operation of
such ships or aircraft shall be taxable only in that
territory.
4.Gains derived by a resident of a territory from the alienation
of shares or comparable interests deriving more than 50 per
cent of their value directly or indirectly from immovable
property situated in the other territory may be taxed in that
other territory.
5.Gains from the alienation of any property other than that
referred to in paragraphs 1, 2, 3 and 4, shall be taxable only
in the territory of which the alienator is a resident.

Article 14
INDEPENDENT PERSONAL SERVICES
1.Income derived by a resident of a territory in respect of
professional services or other activities of an independent
character shall be taxable only in that territory except in
the following circumstances, when such income may also be
taxed in the other territory:
(a)if he has a fixed base regularly available to him in the
other territory for the purpose of performing his
activities; in that case, only so much of the income as is
attributable to that fixed base may be taxed in that
territory; or
(b)if his stay in the other territory is for a period or
periods amounting to or exceeding in the aggregate 183 days
in any twelve-month period commencing or ending in the
calendar year concerned; in that case, only so much income
as is derived from his activities performed in the other
territory may be taxed in that territory.
2.The term “professional services“ includes especially
independent scientific, literary, artistic, educational or
teaching activities as well as the independent activities of
physicians, lawyers, engineers, architects, dentists and
accountants.

Article 15
INCOME FROM EMPLOYMENT
1.Subject to the provisions of Articles 16, 18 and 19, salaries,
wages and other similar remuneration derived by a resident of
a territory in respect of an employment shall be taxable only
in that territory unless the employment is exercised in the
other territory. If the employment is so exercised, such
remuneration as is derived therefrom may be taxed in that
other territory.
2.Notwithstanding the provisions of paragraph 1, remuneration
derived by a resident of a territory in respect of an
employment exercised in the other territory shall be taxable
only in the first-mentioned territory if:
(a)the recipient is present in the other territory for a period
or periods not exceeding in the aggregate 183 days in any
twelve-month period commencing or ending in the calendar
year concerned, and
(b)the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other territory, and
(c)the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other
territory.
3.Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic,
may be taxed in the territory in which the enterprise which
operates the ship or aircraft is a resident.

Article 16
DIRECTORS' FEES
Directors' fees and other similar payments derived by a resident
of a territory in his capacity as a member of the board of
directors or the supervisory board of a company which is a
resident of the other territory may be taxed in that other
territory.

Article 17
ARTISTES AND SPORTSPERSONS
1.Notwithstanding the provisions of Articles 14 and 15, income
derived by a resident of a territory as an entertainer, such
as a theatre, motion picture, radio or television artiste, or
a musician, or as a sportsperson, from his personal activities
as such exercised in the other territory, may be taxed in that
other territory.
2.Where income in respect of personal activities exercised by an
entertainer or a sportsman in his capacity as such accrues not
to the entertainer or sportsperson himself but to another
person, that income may, notwithstanding the provisions of
Articles 7, 14 and 15, be taxed in the territory in which the
activities of the entertainer or sportsperson are exercised.
3.The provisions of paragraphs 1 and 2 shall not apply to income
derived from activities exercised in a territory by an artiste
or sportsperson if the visit to that territory is wholly or
mainly supported by public funds of one or both of the
authorities administering a territory or any political
subdivision or local authority thereof. In such case, the
income is taxable only in the territory in which the artiste
or the sportsperson is a resident.

Article 18
PENSIONS AND ANNUITIES
1.Pensions and other similar remuneration paid to a resident of
a territory in consideration of past employment, shall be
taxable only in the territory in which they arise. This
provision shall also apply to annuities and to pensions and
other similar remuneration paid by an entity of a territory
under social security legislation in force in that territory
or under a public scheme organized by that territory in order
to supplement the benefits of that social security
legislation.
2.The term “annuity” means a stated sum payable periodically
at stated times during life or during a specified or
ascertainable period of time under an obligation to make the
payments in return for adequate and full consideration in
money or money’s worth.

Article 19
PUBLIC SERVICE
1.
(a)Salaries, wages and other similar remuneration, other than a
pension or annuity, paid by an authority administering a
territory or a political subdivision or a local authority
thereof to an individual in respect of services rendered to
that administering authority or subdivision or authority
shall be taxable only in that territory.
(b)However, such salaries, wages and other similar remuneration
shall be taxable only in the other territory if the services
are rendered in that territory and the individual is a
resident of that territory who:
(i)is a national of that territory; or
(ii)did not become a resident of that territory solely for the
purpose of rendering the services.
2.The provisions of Articles 15, 16 and 17 shall apply to
salaries, wages and other similar remuneration in respect of
services rendered in connection with a business carried on by
an authority administering a territory or a political
subdivision or a local authority thereof.

Article 20
STUDENTS
Payments which a student, apprentice or business trainee who is
or was immediately before visiting a territory a resident of the
other territory and who is present in the first-mentioned
territory solely for the purpose of his education or training,
receives for the purpose of his maintenance, education or
training shall not be taxed in that territory, provided that
such payments arise from sources outside that territory.

Article 21
OTHER INCOME
1.Items of income of a resident of a territory, wherever
arising, not dealt with in the foregoing Articles of this
Agreement shall be taxable only in that territory.
2.The provisions of paragraph 1 shall not apply to income, other
than income from immovable property as defined in paragraph 2
of Article 6, if the recipient of such income, being a
resident of a territory, carries on business in the other
territory through a permanent establishment situated therein,
or performs in that other territory independent personal
services from a fixed base situated therein, and the right or
property in respect of which the income is paid is effectively
connected with such permanent establishment or fixed base. In
such case the provisions of Article 7 or 14, as the case may
be, shall apply.

Article 22
ELIMINATION OF DOUBLE TAXATION
1.In the case of the territory referred to in subparagraph 3(a)
of Article 2, double taxation shall be avoided as follows:
Where a resident of the territory referred to in subparagraph
3(a) of Article 2 derives income from the other territory, the
amount of tax on that income paid in the other territory (but
excluding, in the case of a dividend, tax paid in respect of
the profits out of which the dividend is paid) and in
accordance with the provisions of this Agreement, shall be
credited against the tax levied in the first-mentioned
territory imposed on that resident. The amount of credit,
however, shall not exceed the amount of the tax in the
first-mentioned territory on that income computed in
accordance with its taxation laws and regulations.
2.In the case of the territory referred to in subparagraph 3(b)
of Article 2 double taxation shall be avoided as follows:
(a)Where a resident of the territory referred to in
subparagraph 3(b) of Article 2 derives income which, in
accordance with the provisions of this Agreement may be
taxed in the territory referred to in subparagraph 3(a) of
Article 2, the territory referred to in subparagraph 3(b) of
Article 2 shall, subject to the provisions of subparagraph
(b) and subparagraph (c), exempt such income from tax.
(b)Where a resident of the territory referred to in
subparagraph 3(b) of Article 2 derives items of income
which, in accordance with the provisions of Article 10, 11
or 12 may be taxed in the territory referred to in
subparagraph 3(a) of Article 2, the territory referred to in
subparagraph 3(b) of Article 2 shall allow as a deduction
from the tax on the income of that resident an amount equal
to the tax paid in the territory referred to in subparagraph
3(a) of Article 2. Such deduction shall not, however, exceed
that part of the tax, as computed before the deduction is
given which is attributable to such items of income derived
from the territory referred to in subparagraph 3(a) of
Article 2.
(c)Where in accordance with any provision of the Agreement
income derived by a resident of the territory referred to in
subparagraph 3(b) of Article 2 is exempt from tax in that
territory, such territory may nevertheless, in calculating
the amount of tax on the remaining income of such resident,
take into account the exempted income.
(d)The provisions of subparagraph (a) shall not apply to income
derived by a resident of the territory referred to in
subparagraph 3(b) of Article 2 where the other territory
applies the provisions of this Agreement to exempt such
income from tax or applies the provisions of paragraph 2 of
Article 10, 11 or 12 to such income.

Article 23
NON-DISCRIMINATION
1.Nationals of a territory shall not be subjected in the other
territory to any taxation or any requirement connected
therewith, which is other or more burdensome than the taxation
and connected requirements to which nationals of that other
territory in the same circumstances, in particular with
respect to residence, are or may be subjected. This provision
shall, notwithstanding the provisions of Article 1, also apply
to persons who are not residents of one or both of the
territories.
2.The taxation on a permanent establishment which an enterprise
of a territory has in the other territory shall not be less
favourably levied in that other territory than the taxation
levied on enterprises of that other territory carrying on the
same activities. This provision shall not be construed as
obliging a territory to grant to residents of the other
territory any personal allowances, reliefs and reductions for
taxation purposes on account of civil status or family
responsibilities which it grants to its own residents.
3.Except where the provisions of paragraph 1 of Article 9,
paragraph 7 of Article 11, or paragraph 6 of Article 12,
apply, interest, royalties and other disbursements paid by an
enterprise of a territory to a resident of the other territory
shall, for the purpose of determining the taxable profits of
such enterprise, be deductible under the same conditions as if
they had been paid to a resident of the first-mentioned
territory.
4.Enterprises of a territory, the capital of which is wholly or
partly owned or controlled, directly or indirectly, by one or
more residents of the other territory, shall not be subjected
in the first-mentioned territory to any taxation or any
requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to
which other similar enterprises of the first-mentioned
territory are or may be subjected.
5.The provisions of this Article shall apply to taxes which are
the subject of this Agreement.

Article 24
MUTUAL AGREEMENT PROCEDURE
1.Where a person considers that the actions of one or both of
the territories result or will result for him in taxation not
in accordance with the provisions of this Agreement, he may,
irrespective of the remedies provided by the domestic law of
those territories, present his case to the competent authority
of the territory of which he is a resident or, if his case
comes under paragraph 1 of Article 23, to that of the
territory of which he is a national. The case must be
presented within three years from the first notification of
the action resulting in taxation not in accordance with the
provisions of the Agreement.
2.The competent authority shall endeavour, if the objection
appears to it to be justified and if it is not itself able to
arrive at a satisfactory solution, to resolve the case by
mutual agreement with the competent authority of the other
territory, with a view to the avoidance of taxation which is
not in accordance with the Agreement. Any agreement reached
shall be implemented notwithstanding any time limits in the
domestic law of the territories.
3.The competent authorities of the territories shall endeavour
to resolve by mutual agreement any difficulties or doubts
arising as to the interpretation or application of the
Agreement. They may also consult together for the elimination
of double taxation in cases not provided for in the Agreement.
4.The competent authorities of the territories may communicate
with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs.

Article 25
EXCHANGE OF INFORMATION
1.The competent authorities of the territories shall exchange
such information as is foreseeably relevant for carrying out
the provisions of this Agreement or to the administration or
enforcement of the domestic laws concerning taxes of every
kind and description imposed on behalf of the territories, or
of their local authorities, insofar as the taxation thereunder
is not contrary to the Agreement. The exchange of information
is not restricted by Articles 1 and 2.
2.Any information received under paragraph 1 by a territory
shall be treated as secret in the same manner as information
obtained under the domestic laws of that territory and shall
be disclosed only to persons or authorities (including courts
and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of,
the determination of appeals in relation to the taxes referred
to in paragraph 1, or the oversight of the above. Such persons
or authorities shall use the information only for such
purposes. They may disclose the information in public court
proceedings or in judicial decisions.
3.In no case shall the provisions of paragraphs 1 and 2 be
construed so as to impose on a territory the obligation:
(a)to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
territory;
(b)to supply information which is not obtainable under the laws
or in the normal course of the administration of that or of
the other territory;
(c)to supply information which would disclose any trade,
business, industrial, commercial or professional secret or
trade process, or information the disclosure of which would
be contrary to public policy (ordre public).
4.If information is requested by a territory in accordance with
this Article, the other territory shall use its information
gathering measures to obtain the requested information, even
though that other territory may not need such information for
its own tax purposes. The obligation contained in the
preceding sentence is subject to the limitations of paragraph
3 but in no case shall such limitations be construed to permit
a territory to decline to supply information solely because it
has no domestic interest in such information.
5.In no case shall the provisions of paragraph 3 be construed to
permit a territory to decline to supply information solely
because the information is held by a bank, other financial
institution, nominee or person acting in an agency or a
fiduciary capacity or because it relates to ownership
interests in a person.

Article 26
LIMITATION ON BENEFITS
Notwithstanding the provisions of any other Article of this
Agreement, a resident of a territory shall not receive the
benefit of any reduction in or exemption from tax provided for
in the Agreement by the other territory if the competent
authority of the other territory determines that the main
purpose or one of the main purposes of such resident or a person
connected with such resident was to obtain the benefits of this
Agreement.

Article 27
ENTRY INTO FORCE
1.The Taipei Representative Office in Hungary and the Hungarian
Trade Office in Taipei shall notify each other in writing that
the processes required for the entry into force of this
Agreement in their respective territories have been complied
with.
2.This Agreement shall enter into force on the 30th day
following the receipt of the latter of the notifications
referred to in paragraph 1 and its provisions shall have
effect in both territories:
(a)with respect to taxes withheld at source, on income paid,
credited or payable on or after 1 January of the calendar
year next following that in which the Agreement enters into
force;
(b)with respect to other taxes on income, for taxes chargeable
for any tax year beginning on or after 1 January of the
calendar year next following that in which the Agreement
enters into force.

Article 28
TERMINATION
This Agreement shall remain in force until terminated by a
territory. Either territory may terminate the Agreement in
writing, by giving notice of termination at least six months
before the end of any calendar year after the date of entry into
force of the Agreement.
In such event, this Agreement shall cease to have effect in both
territories:
(a)with respect to taxes withheld at source, on income paid,
credited or payable on or after 1 January of the calendar
year next following that in which the notice is given;
(b)with respect to other taxes on income, to taxes chargeable
for any tax year beginning on or after 1 January of the
calendar year next following that in which the notice is
given.

IN WITNESS WHEREOF the undersigned, duly authorised thereto,
have signed this Agreement.

Done in duplicate at ……………………… this……………day of……
…….…….……., in the Chinese, Hungarian and English
languages, each text being equally authentic. In case of
divergence of interpretation the English text shall prevail.

For the Taipei Representative For the Hungarian Trade Office
Office in Hungary in Taipei


PROTOCOL to the Agreement between the Taipei Representative
Office in Hungary and the Hungarian Trade Office in Taipei for
the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income

signed on ……………………….…….……. at ………………………

The Taipei Representative Office in Hungary and the Hungarian
Trade Office in Taipei have in addition to the Agreement for the
Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income signed on …………………
…….…….……. at ……………………… agreed on the following
provisions, which shall form an integral part of the said
Agreement:
1.With reference to subparagraph 1(b) of Article 3 and
paragraphs 1 and 2 of Article 4:
the Agreement shall apply to a partnership which is
established in accordance with the domestic laws of the
territory referred to in subparagraph 3(a) of Article 2 in
respect of the income tax on the portion of profits
attributable to any partner who is a resident of the territory.
2.With reference to subparagraph 1(c) of Article 3:
it is understood that partnerships (beteti tarsasag,
kozkereseti tarsasag) established in the territory referred to
in subparagraph 3(b) of Article 2 are taxed in that territory
as corporations, and therefore fall within the definition of
"company".
3.With reference to Article 25:
It is understood that
(a)information would only be exchanged upon receipt of specific
request;
(b)the Article does not create obligations as regards automatic
or spontaneous exchanges of information between the
Contracting territories;
(c)the Contracting territories shall ensure the protection of
personal data transferred according to the Agreement and
their domestic law. With regard to personal data
processing, the Contracting territories shall follow the
provisions of the Agreement concerning confidentiality and
utilization of the exchange of information. They shall only
transfer to each other personal data which are foreseeably
relevant and suitable for the achievement of the purposes
set out in Article 25, and they shall process the data
received only for the period necessary to the implementation
of the Agreement. The Contracting territories shall ensure
the supervision of the lawfulness of data processing through
a separate authority in accordance with their domestic law.
Furthermore, the data subject shall, in accordance with the
provisions of the Agreement and the respective domestic law,
have:
(i)the right to request information about his/her personal
data processed,
(ii)the right to initiate the erasure of the data processed
illegally and the rectification of data managed
inaccurately, and
(iii)the right to legal remedy by an independent authority in
case the rights related to the processing of personal data
are infringed.
4.Present Agreement shall in no way prejudice any obligations
deriving from membership in the European Union. However,
should either territory find that the provisions of this
Agreement are inconsistent with any obligations deriving from
membership in the European Union, either territory may seek
consultations regarding the possible negotiation of amendments
to the Agreement.

IN WITNESS WHEREOF the undersigned, duly authorised thereto,
have signed this Protocol.

Done in duplicate at ……………………… this……………day of……
…….…….……., in the Chinese, Hungarian and English
languages, each text being equally authentic. In case of
divergence of interpretation the English text shall prevail.

For the Taipei Representative For the Hungarian Trade Office
Office in Hungary in Taipei