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PROTOCOL

PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF HUNGARY AND THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

The Government of Hungary and the Government of the Islamic Republic of Iran have in addition to the Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital signed at Tehran on 30 November 2015 corresponding to 9 Azar 1394 Solar Hijra agreed on the following provisions, which shall form an integral part of the said Agreement:

(1) The Government of Hungary understands that the obligations of Hungary under this Agreement are consistent with its obligations as a member of the European Union. However, if Hungary finds out in the future that its obligations under this Agreement are inconsistent with the requirements that apply to Hungary as a member of the European Union, both Contracting States may consult each other about the possible amendments of the Agreement.

(2) With reference to Article 25 (Exchange of Information), it is understood that:

  • (a) In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
  • (b) However, the application of sub-paragraph (a) in both States depends on the legislative amendments of the relevant domestic laws and regulations that do not allow for the time being such exchange of information in the Islamic Republic of Iran. The competent authority of the Islamic Republic of Iran shall notify the competent authority of Hungary without delay when the conditions for the application of this provision are met.

This Protocol consisting of a preamble and 2 paragraphs was made in duplicate in Hungarian, Persian and English languages, at Tehran on the thirtieth day of November 2015, corresponding to 9 Azar 1394 Solar Hijra all of which being equally authentic. In case of any divergence in interpretation, the English text shall prevail.

IN WITNESS WHEREOF, the undersigned, duly authorised thereto, by their respective Governments, have signed this Protocol.

FOR THE GOVERNMENT OF HUNGARY:

FOR THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN: