US-Hungary Treaty’s Effect on Withheld Taxes Nulled as of 2024

A terminated treaty between Hungary and the US will cease to have effect on amounts paid or credited on or after Jan. 1, 2024, for taxes withheld at the source, the Treasury Department said Friday.

The Treasury issued a notification in July 2022 that it was terminating its 43-year tax convention with Hungary, citing cuts in the country’s corporate tax rate and a lack of withholding taxes on payments to non-residents. In its announcement Friday, the department noted the termination was effective Jan. 8, 2023.

• However, “in respect of tax withheld at source, Article 26 states that the Convention ...