A Taiwan-Hungary treaty that abolishes double taxation between the two countries took effect Dec. 29, according to the Ministry of Finance. Under the agreement, which was signed in April, investors pay taxes only in the country where they maintain long-term bases of operation, the MOF said. “Hungary is an important gateway for Taiwan to enter the Eastern Europe market,” the MOF said. “The treaty will help Taiwan sharpen its global competitiveness and make the country a more appealing investment destination for European companies.” In addition, the MOF said, tax rates on stock dividends will be harmonized at 10 percent as opposed to 20 percent and 25 percent in Taiwan and Hungary, respectively. Interest income will also be taxed at 10 percent, down from 15 percent to 20 percent in Taiwan and 30 percent in Hungary, the MOF added. The agreement should benefit major Taiwanese enterprises operating in Hungary, including Foxconn Technology Group, Quanta Computer Inc. and YAGEO Corp., the MOF said. Taiwan’s pact with Hungary is the 19th income tax treaty signed by the MOF to come into force. The agreement was approved by the Hungarian parliament Nov. 22. (JSM)
