(1) Tax shall be determined in the case of a resident of
Germany as follows:
a) Unless foreign tax credit is to be allowed under sub-para-
graph b), there shall be exempted from the assessment basis
of the German tax any item of income arising in Hungary and
any item of capital situated within Hungary which, according
to this Agreement, is effectively taxed in Hungary. In the case
of items of income from dividends the preceding provision
shall apply only to such dividends as are paid to a company
(not including partnerships) being a resident of Germany by a
company being a resident of Hungary at least 10 per cent of
the capital of which is owned directly by the German com-
pany and which were not deducted when determining the
profits of the company distributing these dividends. There
shall be exempted from the assessment basis of the taxes on
capital any shareholding the dividends of which if paid, would
be exempted, according to the foregoing sentences.
b) Subject to the provisions of German tax law regarding credit
for foreign tax, there shall be allowed as a credit against
German tax on income payable in respect of the following
items of income the Hungarian tax paid under the laws of
Hungary and in accordance with this Agreement:
aa) dividends not dealt with in sub-paragraph a);
bb) items of income that may be taxed in Hungary according
to paragraph 2 of Article 13;
cc) items of income that may be taxed in Hungary according
to paragraph 3 of Article 14;
dd) directors’ fees;
ee) items of income that may be taxed according to
Article 16.
c) The provisions of sub-paragraph b) shall apply instead of the
provisions of sub-paragraph a) to items of income as defined
in Articles 7 and 10 and to the assets from which such in-
come is derived if the resident of Germany does not prove
that the gross income of the permanent establishment in the
business year in which the profit has been realised or of the
company resident in Hungary in the business year for which
the dividends were paid was derived exclusively or almost
exclusively from activities within the meaning of nos. 1 to 6
of paragraph 1 of section 8 of the German Law on External
Tax Relations (Aussensteuergesetz); the same shall apply to
immovable property used by a permanent establishment and
to income from this immovable property of the permanent
establishment (paragraph 4 of Article 6) and to profits from
the alienation of such immovable property (paragraph 1 of
Article 13) and of the movable property forming part of
the business property of the permanent establishment
(paragraph 3 of Article 13).
d) Germany, however, retains the right to take into account in
the determination of its rate of tax the items of income and
capital, which are under the provisions of this Agreement
exempted from German tax.
e) Notwithstanding the provisions of sub-paragraph a) double
taxation shall be avoided by allowing a tax credit as laid down
in sub-paragraph b)
aa) if in the Contracting States items of income or capital
are placed under differing provisions of this Agreement
or attributed to different persons (except pursuant to
Article 9) and this conflict cannot be settled by a proce-
dure in accordance with paragraph 3 of Article 24 and if
as a result of this difference in placement or attribution
the relevant income or capital would remain untaxed or
be taxed lower than without this conflict or
bb) if the competent authority of Germany notifies the com-
petent authority of Hungary of other items of income to
which it intends to apply the provisions of sub-
paragraph b). Double taxation is then avoided for the
notified income by allowing a tax credit from the first day
of the calendar year, next following that in which the
notification was received and all legal requirements
according to the internal law of Germany are fulfilled.
(2) Tax shall be determined in the case of a resident of
Hungary as follows:
a) Where a resident of Hungary derives income or owns capital
which, in accordance with the provisions of this Agreement
may be taxed in Germany, Hungary shall, subject to the
provisions of sub-paragraphs b) and c), exempt such income
or capital from tax.
b) Where a resident of Hungary derives items of income which,
in accordance with the provisions of Article 10, may be taxed
in Germany, Hungary shall allow as a deduction from the tax
on the income of that resident an amount equal to the tax
paid in Germany. Such deduction shall not, however, exceed
that part of the tax, as computed before the deduction is
given which is attributable to such items of income derived
from Germany.
c) Where in accordance with any provision of the Agreement
income derived or capital owned by a resident of Hungary is
exempt from tax in Hungary, Hungary may nevertheless, in
calculating the amount of tax on the remaining income or
capital of such resident, take into account the exempted
income or capital.
d) The provisions of sub-paragraph a) shall not apply to income
derived or capital owned by a resident of Hungary where
Germany applies the provisions of this Convention to exempt
such income or capital from tax or applies the provisions of
paragraph 2 of Article 10 to such income.
de-hungary-2011-base | BGBl. 2011 II S. 919 | Signed: 2011-02-28 | Gazette publication: 2011-10-07
Source form
official-publication PDF retained unchanged; reader derives from an evidenced native font-map encoding-recovery derivative, not OCR
Source scope
original implementing law, bilingual base treaty and accompanying protocol; not a current consolidated text
Retrieved
2026-09-30
Text and language scope
The original signing clause identifies German, Hungarian and English as authentic. Only German and English are supplied; the authentic Hungarian version is NOT included. The clause gives English precedence in divergent interpretation of the German and Hungarian texts. Unreviewed coordinate-based machine transcription of this original source edition only. Printed line breaks, hyphens and uncertain token spacing are retained, not silently corrected. Treaty preamble, closing formula, protocol and shared signatures are separate retained assets, not part of the last article. Full supplements: /review/de-hungary-2011-base/. PDF page links identify pages, not verified paragraph correspondence. Signed 2011-02-28; consent law 2011-09-30; Gazette publication 2011-10-07; treaty entry into force UNRESOLVED in pinned audit (retained official-article audit evidence); general application from 2012-01-01 (roster, not universal tax-specific start). Encoding-recovery method: only independently evidenced source font code00 /space Unicode mappings U+0007 to U+0020 changed in a separately hashed derivative. CFF blank glyphs, 278-unit advances, unchanged decoded page content streams and 22/22 identical page renders evidence this mapping. Word regrouping is logged; every nonspace character is conserved in sequence within its physical source line. No generated treaty wording and no OCR.
Review status
Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed.
Currentness
Original source edition; not a verified current-law consolidation. Original base edition only; current law NOT verified. Integral protocol retained separately, not merged into the final article. Later changes and 2026 developments are not exhaustively verified. KNOWN MLI EFFECTS OMITTED: audit records general application from 2025-01-01 and Part VI from 2024-11-01; neither is incorporated. Tax-specific MLI application remains unreviewed. Replaces agreement signed 1977-07-18; exact transitional effects remain unreviewed. Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Protocols and later instruments
Integral protocol retained separately, not merged into the final article. Later changes and 2026 developments are not exhaustively verified. KNOWN MLI EFFECTS OMITTED: audit records general application from 2025-01-01 and Part VI from 2024-11-01; neither is incorporated. Tax-specific MLI application remains unreviewed. Replaces agreement signed 1977-07-18; exact transitional effects remain unreviewed. Source-triage warnings: Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force. Known related/later instruments NOT included in this source (agent triage, not exhaustive): BEPS-MLI; general application from: 2025-01-01; part VI general application from: 2024-11-01
Text language and status
en · authentic-language-transcription · machine-transcription
BGBl. 2011 II S. 919 | de-hungary-2011-base | de-hungary-2011-base | BGBl. 2011 II S. 919 | Signed: 2011-02-28 | Gazette publication: 2011-10-07 | Article 22 | en | Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed. | /library/treaties/de-hungary-2011-base/en/articles/article-22/
Source, edition and limits
Source edition
de-hungary-2011-base | BGBl. 2011 II S. 919 | Signed: 2011-02-28 | Gazette publication: 2011-10-07
Source form
official-publication PDF retained unchanged; reader derives from an evidenced native font-map encoding-recovery derivative, not OCR
Source scope
original implementing law, bilingual base treaty and accompanying protocol; not a current consolidated text
Retrieved
2026-09-30
Text and language scope
The original signing clause identifies German, Hungarian and English as authentic. Only German and English are supplied; the authentic Hungarian version is NOT included. The clause gives English precedence in divergent interpretation of the German and Hungarian texts. Unreviewed coordinate-based machine transcription of this original source edition only. Printed line breaks, hyphens and uncertain token spacing are retained, not silently corrected. Treaty preamble, closing formula, protocol and shared signatures are separate retained assets, not part of the last article. Full supplements: /review/de-hungary-2011-base/. PDF page links identify pages, not verified paragraph correspondence. Signed 2011-02-28; consent law 2011-09-30; Gazette publication 2011-10-07; treaty entry into force UNRESOLVED in pinned audit (retained official-article audit evidence); general application from 2012-01-01 (roster, not universal tax-specific start). Encoding-recovery method: only independently evidenced source font code00 /space Unicode mappings U+0007 to U+0020 changed in a separately hashed derivative. CFF blank glyphs, 278-unit advances, unchanged decoded page content streams and 22/22 identical page renders evidence this mapping. Word regrouping is logged; every nonspace character is conserved in sequence within its physical source line. No generated treaty wording and no OCR.
Review status
Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed.
Currentness
Original source edition; not a verified current-law consolidation. Original base edition only; current law NOT verified. Integral protocol retained separately, not merged into the final article. Later changes and 2026 developments are not exhaustively verified. KNOWN MLI EFFECTS OMITTED: audit records general application from 2025-01-01 and Part VI from 2024-11-01; neither is incorporated. Tax-specific MLI application remains unreviewed. Replaces agreement signed 1977-07-18; exact transitional effects remain unreviewed. Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Protocols and later instruments
Integral protocol retained separately, not merged into the final article. Later changes and 2026 developments are not exhaustively verified. KNOWN MLI EFFECTS OMITTED: audit records general application from 2025-01-01 and Part VI from 2024-11-01; neither is incorporated. Tax-specific MLI application remains unreviewed. Replaces agreement signed 1977-07-18; exact transitional effects remain unreviewed. Source-triage warnings: Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force. Known related/later instruments NOT included in this source (agent triage, not exhaustive): BEPS-MLI; general application from: 2025-01-01; part VI general application from: 2024-11-01
Text language and status
en · authentic-language-transcription · machine-transcription