The agreement on the exchange of tax information (bilateral competent authority arrangement), which will enable more effective measures against international tax evasion, was signed by Mihály Varga, the Hungarian Minister of Finance and David B. Cornstein, the United States Ambassador to Hungary, on 25 October 2018.
The conclusion of the agreement on the exchange of tax information enabling the automatic exchange of Country-by-Country Reports (CbCR) on tax information is good news for the Hungarian members of multinational corporate groups with a US parent company, who without such an agreement on information exchange could even be obliged to submit a country-by-country report to the Hungarian state tax authority at the end of this year. If however, the agreement on the exchange of tax information takes effect by the end of this year, the above-mentioned Hungarian members of these groups will become exempt from the obligation to submit country-by-country reports.
The agreement will be submitted to the Hungarian Parliament, and only then can it be promulgated. We will notify our readers about the date of its entry into force as soon as we can.
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Mandatory country-by-country reporting – Hungary joins the ranks