background image
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.


The Government of Hungary and the Government of the United Arab Emirates 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 30 April 2013 at Dubai agreed on the following provisions, which shall form an integral part of the said Agreement:

(1) With reference to Article 4 paragraph (1) subparagraph (b): It is understood that the United Arab Emirates consists of:

the federal State composed of seven Emirates,

the local governments of the federal State (Emirate of Abu Dhabi, Emirate of Dubai, Emirate of Sharjah, Emirate of Ajman, Emirate of Umm Al-Qaiwain, Emirate of Ras al-Kaimah and Emirate of Fujairah), and

the local authorities of the local governments.

(2) With reference to Article 5 paragraph (2) subparagraph (b): It is understood that the term resident shall include:

  • (1) In the case of the United Arab Emirates:
  • U.A.E. Central Bank, Abu Dhabi Investment Authority, Abu Dhabi Investment Council, Emirates Investment Authority, Mobadala, Dubai World, Dubai Investment Office or any other governmental institution which are wholly or substantially owned by the Government of the United Arab Emirates or local governments.
  • (2) In the case of Hungary:
    • (1) - the Magyar Nemzeti Bank;
    • (2) - the Magyar Nemzeti Vagyonkezelo Zrt. (Hungarian National Asset Management Zrt.);
    • (3) - public service broadcasters (as specified by law);
    • (4) - companies limited by shares engaged in providing surety insurance services under the conditions laid down in another act and in other legislation adopted under the authorization of such act;

or any other governmental institutions specified by the Act on Corporate Taxation or other Hungarian laws.

It is further understood that at the time of signing of the Agreement, pension funds are not taxable persons in either Contracting State.

(3) With reference to Article 14

It is understood that Article 14 includes capital gains from the alienation of shares or comparable interest in a company other than those referred to in paragraph (4) of this Article derived by a resident of a Contracting State.

(4) With reference to Article 24

The Contracting Parties shall mutually define the cases when provisions of paragraph (6) of Article 24 can be applied.

(5) Present Convention shall in no way prejudice to the obligations deriving from Hungary's membership in the European Union.

(6) Present Convention shall in no way prejudice to the obligations deriving from the United Arab Emirates' membership in the Gulf Cooperation Council.

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

DONE in duplicate at Dubai, this thirtieth day of April 2013, in the Hungarian, Arabic and English languages, each text being equally authentic. In case of divergence of interpretation the English text shall prevail.