Beneficial owners - Hungarian equities
The following types of beneficial owner are recognised for tax purposes in Hungary:
- Individuals resident of a Double Taxation Treaty (DTT) country
- Legal entities not resident in Hungary
- Legal entities resident in Hungary
- Individuals resident in Hungary
Individuals resident of a Double Taxation Treaty (DTT) country
Individual beneficial owners that are residents in a country which has signed a DTT with Hungary may benefit from a reduced tax rate on dividends payments. The maximum withholding tax rates are defined in the DTT list.
Legal entities not resident in Hungary
Beneficial owners that are legal entities not resident in Hungary may benefit from a tax exemption on dividends payments.
Legal entities resident in Hungary
Beneficial owners that legal entities resident in Hungary receive dividends gross without deduction of withholding tax. However, it remains the responsibility of the final investors to fulfil their tax declaration obligations. Clearstream Banking has no direct or indirect liability towards the tax authorities.
Individuals resident in Hungary
Individual beneficial owners that are residents in Hungary are not eligible to benefit from tax relief at source nor to reclaim withholding tax through Clearstream Banking.