Tax Treaties / Adógyezmények

G. Erdős – G. Czoboly: Exiting from the Obligations of a Tax Treaty: An International Framework with Diverse Practices, Bulletin for International Taxation, IBFD, Amsterdam 77(7) (2023), 292-304. ISSN 1819-5490

Tax treaties form the core of international cooperation between states, yet a number of issues related to exiting treaty obligations are not or only generally regulated within the framework of codified or customary international law which leads to varying practices and the arbitrary interpretation of rules. This paper focuses on the withdrawal intention of states starting with the pre-ratification period and ending with post-treaty obligations. Until recently the termination of tax treaties was a fairly rare event, mostly justified by the conclusion of new treaties or the misuse of the tax treaty in question. In the recent years, however, the number of tax treaty terminations increased substantially and what is more worrying, many of those terminations aimed to exercise political pressure. Withdrawal intentions may be latent or expressed, they can manifest in undue delays during the negotiations, in un-signing of an already signed treaty, or in the termination or suspension of the application of a treaty. Those intentions can also be reversed until the process is completed by withdrawing the notice on withdrawal.  Intentions are reviewed in the light of the general principles of international law, within the codified framework of the Vienna Convention on the Law of Treaties and the model tax conventions, and through the lens of jurisprudence.

Erdős, G. , Czoboly G.: A USA egyezmény felmondásának potenciális hatásai (Potential effects of the termination of the US-HU tax treaty) SZAKma, 2022/9 (2022),

With the United States of America delivering a termination notice of the 1979 US-Hungarian tax treaty in early 2022 a very complex legal situation evolved. The old treaty cannot be applied as of 2024. Hungary has a newer tax treaty which has been approved by the Hungarian parliament in 2010 but never got the consensus of the US Senate and, therefore, could not enter into force. The US has substantially changed it model tax treaty since the Hungarian treaty negotiations. The article highlights the type of income and persons who loose most by a treaty-less situation and investigates potential scenarios and timelines for restoring the treaty relationship with the US. 

Erdős, G.: Telephelyek, VI. Nemzetközi AdókonferenciaTelephelyek, fióktelepek adózási, számviteli kérdései (Taxation of permanent establishments and branches) in the proceedings of Moklasz Penta Unió, Budapest 2012, június 7-8. (2012), 27­ – 36.  ISBN 978-615-5249-03-7

Abstract: In this proceedings the paper enumerates the reasons which may lead to the creation of a taxable presence: a permanent establishment. The paper also deals with the major allocation of profit rules as well as the differences between the OECD and the UN Model Tax Convention.

Erdős, G.: Ami az adóegyezményekből kimaradt, Kettős Adóztatási Egyezmények (Things not Included in Tax Treaties)  (Eds.Grunszt, K.), Moklasz Penta Unió, Budapest (conference proceedings) (2009), 27-38. ISBN 978-963-86637-5-77

Abstract: Tax treaties allocate taxing rights between the country of source and residence in order to avoid double taxation. There are cases, however, when treaties are inefficient. They cannot handle triangular cases or timing mismatches, just to mention two examples.

Erdős, G.: Nemzetközi adózás, Pénzügyi jog I. (International Tax , in Business Law) (Eds: Földes, G., Simon, I.) Osiris Kiadó, (2003, 2007), ). 207-238.  ISBN 978-963-389-961-8

Abstract: The book chapter give an introduction to the OECD Model Convention and its articles. It explains the basics of international taxation, double taxation, the aim of tax treaties, and their methods of allocating taxing rights between the country of source and residence.