For legal purposes, international double taxation can, in general, be defined as the charging taxes of similar nature in two (or more) states to the same taxable person, the same object and for the same period.
The purpose of the OECD Double Tax Treaties is to provide a means for the standard handling of the most common problems arising as a result of international double taxation in the legal sense.
The treaties are typically concluded between countries bilaterally, there are therefore currently thousands of such treaties in place. Hungary concluded treaties on the avoidance of double taxation with a number of countries, which are listed in detail in the schedule to our publication Doing Business In Hungary. The latest means for the combating tax-evasion is a multilateral instrument (MLI),which has not yet been ratified by Hungary. The MLI integrates the rules defined under the OECD BEPS project in the network of treaties of the over 90 countries signing it without having to amend individual tax treaties through bilateral negotiations. The amendments based on MLI may be applied in respect of an existing tax treaty three months after the date of ratification of the instrument by both states concerned.