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.


Taxes Covered

(1) This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its local authorities, irrespective of the manner in which they are levied.

(2) There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital or on elements of income or of capital, 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 Convention shall apply are in particular:

  • (a) in Hungary:
    • (i) the personal income tax;
    • (ii) the corporate tax;
    • (iii) the land parcel tax; and
    • (iv) the building tax;
  • (hereinafter referred to as “Hungarian tax”);
  • (b) in the Republic of Iraq:
    • (i) the income tax;
    • (ii) the real estate tax;
    • (iii) the vacant land tax; and
    • (iv) the income tax on foreign oil companies contracting for work in Iraq;
  • (hereinafter referred to as “Iraqi tax”).

(4) The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their respective taxation laws.