The termination of the USA-Hungary double tax convention and its repercussions

In July 2022, the United States of America (“USA”) sent a notification about its intention to unilaterally terminate its double tax treaty (US-Hungary DTT) with Hungary. This notification stirred lots of concerns and questions regarding the future tax treatment of income flows between the two countries that were covered by the US-Hungary DTT. Furthermore, the US-Hungary DTT also served as a legal basis for the exchange of information between the tax authorities of the two states in tax matters.