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of <h1>Hungary-India Protocol on Double Taxation: Key Provisions on Income, Capital Gains, and Dividends Taxation</h1> The protocol between Hungary and India addresses the avoidance of double taxation and fiscal evasion concerning income taxes. It clarifies that income from immovable property and capital gains can be taxed in both countries. Directors' fees and similar payments are also taxable in both states. Profits from construction projects are attributed only to activities within the host state, excluding machinery or equipment deliveries. Dividends paid by Indian companies are taxed at a maximum of 10% for shareholders. The protocol allows administrative expenses incurred outside India as deductions and specifies tax conditions for permanent establishments. The agreement was signed in 2003, with the English text prevailing in case of discrepancies.
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