The U.S. Senate Foreign Relations Committee has approved a new tax treaty with Hungary. The treaty will replace the current treaty originally signed in 1979, and includes the following withholding rates:
- Dividends - 5% if the beneficial owner is a company that holds at least 10% of the voting stock of the paying company, exempt if paid to a qualifying pension fund, otherwise 15%
- Interest - 0%
- Royalties - 0%
Additional provisions apply where dividends paid by a U.S. regulated investment company…