NAV noted that the United States informed Hungary through diplomatic channels on July 8, 2022 of the unilateral termination of the agreement on January 8.
The agreement will cease to have effect with respect to taxes withheld at source on January 1, 2024, and with respect to taxable periods beginning on or after January 1, 2024 for other taxes, it added.
Minister of Foreign Affairs and Trade Péter Szijjártó said days after Hungary was informed of the termination of the treaty that the United States took the step because of Hungary's opposition to the introduction of the global minimum corporate tax rate and the resulting tax increases.
The double taxation treaty was signed in 1979.
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