PROTOCOL
PROTOCOL TO THE CONVENTION BETWEEN THE PRINCIPALITY OF ANDORRA AND HUNGARY FOR THE ELIMINATION OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND THE PREVENTION OF TAX EVASION AND AVOIDANCE, SIGNED AT ANDORRA LA VELLA ON 8 OCTOBER 2021
The Principality of Andorra and Hungary have in addition to the Convention for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance signed at Andorra la Vella on 8 October 2021 agreed on the following provisions, which shall form an integral part of the said Convention:
(1) Present Convention shall in no way prejudice to the obligations deriving from Hungary's membership in the European Union.
(2) With reference to paragraph (1) of Article 4 (Residence):
An investment fund and a pension fund or scheme of a Contracting State is considered to be a resident of that State. For this purpose:
- (a) the term “investment fund” means:
- (i) in the case of Andorra, an investment fund according to the Law 10/2008, of 12 June, on the regulation of the collective investment undertakings under Andorran law, and any other law or regulation that may develop, replace or modify this law in the future;
- (ii) in the case of Hungary an investment fund according to the Act XVI of 2014 on Collective Investment Schemes and Their Management;
- (iii) any other investment fund, arrangement or entity of a Contracting State which the competent authorities of the Contracting States determine to regard as an investment fund for the purpose of this paragraph; and
- (b) the term “pension fund or scheme” means:
- (i) in the case of Andorra, a pension fund or scheme within the meaning of Law 12/2017, of 22 June, on regulation and supervision of insurance and reinsurance in the Principality of Andorra, and any other law or regulation that may develop, complement, replace or modify this law in the future;
- (ii) in the case of Hungary any pension fund or scheme within the meaning of:
- (1) the Act LXXXI of 1997 on Social Insurance Pensions;
- (2) the Act LXXXII of 1997 on Private Pensions and Private Pension Funds;
- (3) the Act XCVI of 1993 on Voluntary Mutual Insurance Funds;
- (4) the Act CXVII of 2007 on Occupational Pension and the Related Institutions;
- (iii) any other pension fund or scheme of a Contracting State which the competent authorities of the Contracting States determine to regard as a pension fund or scheme for the purpose of this paragraph.
(3) With reference to Article 12 (Royalties):
If in any convention for the avoidance of double taxation signed after the date of signature of this Convention by the Principality of Andorra, the Principality of Andorra agrees to exempt royalties arising in the Principality of Andorra from Andorran tax on royalties or to rates of tax lower than those provided for in paragraph (2), such exemption, or lower rate shall automatically apply under this Convention as if it was specified respectively in paragraph (2) with effect from the date on which the provisions of that convention, or of this Convention, whichever is the later, become effective.
(4) With reference to Article 23 (Mutual Agreement Procedure):
In the event that pursuant to an Agreement or Convention for the avoidance of double taxation concluded with another country after the date of signature of this Convention, Hungary agrees to include an arbitration provision in such an Agreement or Convention, the competent authorities of Hungary and Andorra will start negotiations, as soon as possible, with a view to concluding an amending protocol inserting an arbitration provision into this Convention.
(5) With reference to Article 24 (Exchange of Information):
Notwithstanding the entry into force of the Convention, requests for information may be made:
- (a) in respect to tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the requesting Party, to taxable periods beginning on or after the first day of January 2013, or where there is no taxable period, to all taxes arising on or after the first day of January 2013; and
- (b) in respect to other cases, to taxable periods beginning on or after the first day of January 2017 or, where there is no taxable period, for all taxes arising on or after the first day of January 2017.
IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol.
DONE in duplicate at Andorra la Vella this 8th day of October 2021, in the Catalan, Hungarian and English languages, each text being equally authentic. In case of divergence of interpretation the English text shall prevail.
FOR THE GOVERNMENT OF PRINCIPALITY OF ANDORRA:
FOR THE GOVERNMENT OF HUNGARY: