Hungary and Luxembourg sign agreement to avoid double taxation

Representatives of the governments of Hungary and Luxembourg signed an agreement to eliminate double taxation on the sidelines of a meeting of EU finance ministers, the economy ministry said. The new agreement, signed by Economy Minister Mihály Varga and counterpart Pierre Gramegna, replaces an earlier one signed in 1990. It will take effect in January next year, and will ensure that companies or private individuals are not required to pay income tax in both countries, the statement said.

The agreement will also facilitate an exchange of information between tax authorities of Hungary and Luxembourg to prevent tax evasion. In recent years Hungary also signed similar agreements with the United States, Germany, the UK, and Denmark.