11 February 2021
The Hungarian parliament is considering a draft bill submitted on 9 February 2021 for the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). After the internal ratification process is completed, Hungary must deposit its ratification instrument to bring the MLI into force for its covered agreements (tax treaties).
The MLI will generally enter into force for a particular covered agreement on the first day of the month following a three-month period after both parties to the covered agreement have deposited their ratification instrument. Once in force, the provisions of the MLI will generally apply for a covered agreement from 1 January of the year following its entry into force in respect of withholding taxes, and for all other taxes with respect to taxable periods beginning on or after the expiration of a 6-month period following the date of entry into force. However, solely for purposes of Hungary's own application of the MLI for other taxes, Hungary has opted for the MLI to apply from 1 January of the calendar year beginning on or after the expiration of the 6-month period after entry into force.
Click the following link for Hungary's provisional list of reservations and notifications at the time of signature. A definitive list will be provided when the ratification instrument is deposited.
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