In Hungary, companies are obliged to pay corporate income tax on their income obtained from business activities performed for profit and other similar activities.
Provided that certain conditions are fulfilled, 50 percent of the revenues accounted as royalties reduce the tax base. The amount of this tax base reduction may not exceed 50 percent of profit before tax.
Hungary levies no withholding tax on dividends, interest or royalties, if payment is made to a company. If payment is made to a private individual, taxes are levied in accordance with the provisions of the applicable double tax treaties.