The last one was agreed in 1977, in very different circumstances. This morning I signed a Double Taxation Treaty between the UK and Hungary, on behalf of the British Government.
Why is that important? Several reasons. It protects against the risk of double taxation where the same income is taxable in either of our countries and it provides certainty of treatment for cross-border trade. Since bilateral trade has reached record levels and the citizens of our two countries increasingly contribute to both of our economies, this is good news. It also helps contribute towards a stable business environment which can foster foreign investment. And it protects governments’ taxing rights and against attempts to avoid or evade tax liability. So this is an important step in making sure that our citizens pay their fair share towards the costs of our governments and the important services they provide.
There are more than 2,500 Double Taxation Treaties world-wide and the UK has the largest network of treaties, covering over 100 countries.