beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Double Taxation Relief Manual

Hungary: Dividends

Dividends are taxable in the source state at a rate of 15% if they are payable by a property investment vehicle, such as a United Kingdom Real Estate Investment Trust.

Dividends are exempt from tax in the source state where the beneficial owner of the dividends is a company which controls at least 10 per cent of the company paying the dividend (unless this company is a property investment vehicle) or is a pension scheme.

In respect of all other recipients, dividends are taxable in the source state at a rate of 10 per cent.

The reduced rates provided by the treaty are not given if the dividend is effectively connected (see INTM153110 eight sub-paragraph) with a permanent establishment which the United Kingdom resident recipient has in Hungary.