Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.
ARTICLE 21
Elimination of Double Taxation
(1) In Hungary double taxation shall be eliminated as follows:
- (a) Where a resident of Hungary derives income which, in accordance with the provisions of this Convention may be taxed in Andorra, and it is effectively taxed there, Hungary shall, subject to the provisions of sub-paragraphs (b) and (c), exempt such income from tax.
- (b) Where a resident of Hungary derives items of income which, in accordance with the provisions of Articles 10 and 12 may be taxed in Andorra, Hungary shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Andorra. 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 Andorra.
- (c) Where in accordance with any provision of the Convention income derived by a resident of Hungary is exempt from tax in Hungary, Hungary 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 sub-paragraphs (a) and (c) shall not apply to income derived by a resident of Hungary where Andorra applies the provisions of this Convention to exempt such income from tax or applies the provisions of paragraph (2) of Article 10 or 12 to such income.
(2) Subject to the provisions of the law of Andorra regarding the elimination of double taxation which shall not affect the general principle hereof, double taxation shall be eliminated as follows:
- (a) Where a resident of Andorra derives income which, in accordance with the provisions of this Convention, may be taxed in Hungary, Andorra shall allow as a deduction from the tax of that resident an amount equal to the tax paid in Hungary.
- Such deduction shall not, however, exceed that part of the Andorran tax, as computed before the deduction is given, which is attributable to such items of income derived from Hungary.
- (b) Where a resident of Andorra derives income which, in accordance with the provisions of this Convention, is exempt from tax in Andorra, Andorra may in order to calculate the amount of tax on the remaining income of the resident, take into account the income that has been exempted.