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        <preface>
            <p>
                <docNumber>50-51/1981</docNumber>
                <docTitle>Convention between The Government of The Republic of Finland and The Government of the Hungarian People's Republic for the avoidance of double taxation with respect to taxes on income and on capital</docTitle>
            </p>
        </preface>
        <preamble>
            <p>
                <embeddedStructure class="mli-addition">
                    <tblock>
                        <heading>SYNTHESISED TEXT OF THE MLI AND THE CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF FINLAND AND THE GOVERNMENT OF THE HUNGARIAN PEOPLE'S REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL </heading>
                        <p>This document presents the synthesised text for the application of the Convention
      between the Government of the Republic of Finland and the Government of the Hungarian People's
      Republic for the avoidance of double taxation with respect to taxes on income and on capital
      signed on 25 October 1978 (the “Convention”), as modified by the Multilateral Convention to
      Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting signed by
      the Republic of Finland and Hungary on 7 June 2017 (the “MLI”).</p>
                        <p>This document was prepared in consultation with the competent authority of Hungary and
      represents a shared understanding of the modifications made to the Convention by the
      MLI.</p>
                        <p>The document was prepared on the basis of the MLI position of the Republic of Finland
      submitted to the Depositary upon acceptance on 25 February 2019 and of the MLI position of
      Hungary submitted to the Depositary upon ratification on 25 March 2021. These MLI positions
      are subject to modifications as provided in the MLI. Modifications made to MLI positions could
      modify the effects of the MLI on the Convention. The Republic of Finland modified its MLI
      position by withdrawing its reservation made to Article 9 and by making additional
      notifications (consolidated MLI position of the Republic of Finland on 27 June 2023). These
      modifications did not modify the effects of the MLI on the Convention.</p>
                        <p>The authentic legal texts of the Convention and the MLI take precedence and remain the
      legal texts applicable.</p>
                        <p>The provisions of the MLI that are applicable with respect to the provisions of the
      Convention are included in boxes throughout the text of this document in the context of the
      relevant provisions of the Convention. The boxes containing the provisions of the MLI have
      generally been inserted in accordance with the ordering of the provisions of the 2017 OECD
      Model Tax Convention.</p>
                        <p>Changes to the text of the provisions of the MLI have been made to conform the
      terminology used in the MLI to the terminology used in the Convention (such as “Covered Tax
      Agreement” and “Convention”, “Contracting Jurisdictions” and “Contracting States”), to ease
      the comprehension of the provisions of the MLI. The changes in terminology are intended to
      increase the readability of the document and are not intended to change the substance of the
      provisions of the MLI. Similarly, changes have been made to parts of provisions of the MLI
      that describe existing provisions of the Convention: descriptive language has been replaced by
      legal references of the existing provisions to ease the readability.</p>
                        <p>In all cases, references made to the provisions of the Convention or to the Convention
      must be understood as referring to the Convention as modified by the provisions of the MLI,
      provided such provisions of the MLI have taken effect.</p>
                        <p>
                            <b>Entry into Effect of the MLI Provisions</b>
                        </p>
                        <p>The provisions of the MLI applicable to this Convention do not take effect on the same
      dates as the original provisions of the Convention. Each of provisions of the MLI could take
      effect on different dates, depending on the types of taxes involved (taxes withheld at source
      or other taxes levied) and on the choices made by the Republic of Finland and Hungary in their
      MLI positions.</p>
                        <p>Dates of the deposit of instruments of ratification, acceptance or approval: 25
      February 2019 for the Republic of Finland and 25 March 2021 for Hungary.</p>
                        <p>Entry into force of the MLI: 1 June 2019 for the Republic of Finland and 1 July 2021
      for Hungary.</p>
                        <p>This document provides specific information on the dates on or after which each of the
      provisions of the MLI has effect with respect to the Convention throughout this
      document.</p>
                        <p>
                            <b>References</b>
                        </p>
                        <p>The authentic legal texts of the MLI can be found on the MLI Depositary (OECD)
      webpage:</p>
                        <p>
                            – in English:
                            <a href="http://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf">http://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf</a>
                                  and
                        </p>
                        <p>
                            – in French:
                            <a href="http://www.oecd.org/fr/fiscalite/conventions/convention-multilaterale-pour-la-mise-en-oeuvre-des-mesures-relatives-aux-conventions-fiscales-pour-prevenir-le-BEPS.pdf">http://www.oecd.org/fr/fiscalite/conventions/convention-multilaterale-pour-la-mise-en-oeuvre-des-mesures-relatives-aux-conventions-fiscales-pour-prevenir-le-BEPS.pdf</a>
                        </p>
                        <p>
                            The MLI position of the Republic of Finland submitted to the Depositary upon
      acceptance on 25 February 2019, the consolidated MLI position of the Republic of Finland
      submitted to the Depositary on 27 June 2023 and the MLI position of Hungary submitted to the
      Depositary upon ratification on 25 March 2021 can be found on the MLI Depositary (OECD)
      webpage:
                            <a href="http://www.oecd.org/tax/treaties/beps-mli-signatories-and-parties.pdf">http://www.oecd.org/tax/treaties/beps-mli-signatories-and-parties.pdf</a>
                        </p>
                        <p>
                            The MLI Matching Database is publicly available on the OECD webpage:
                            <a href="http://www.oecd.org/tax/treaties/mli-matching-database.htm">http://www.oecd.org/tax/treaties/mli-matching-database.htm</a>
                        </p>
                        <p>
                            The Act on Multilateral Convention to Implement Tax Treaty Related Measures to Prevent
      Base Erosion and Profit Shifting is published in Statute Book of Finland 231/2019. Link to
      Finnish language version
                            <a href="https://www.finlex.fi/fi/laki/alkup/2019/20190231">https://www.finlex.fi/fi/laki/alkup/2019/20190231</a>
                                  Link to Swedish language version
                            <a href="https://www.finlex.fi/sv/laki/alkup/2019/20190231">https://www.finlex.fi/sv/laki/alkup/2019/20190231</a>
                        </p>
                        <p>
                            The Government´s Statute on the entry into force of the MLI and the Act and the
      Finnish text (translation) of the MLI is published in the Treaty Series of the Statute Book of
      Finland SopS 21-22/2019. Links to Finnish language versions
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190021">https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190021</a>
                                  and
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190022">https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190022</a>
                                  Links to Swedish language versions
                            <a href="https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190021.pdf">https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190021.pdf</a>
                                  and
                            <a href="https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190022.pdf">https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190022.pdf</a>
                        </p>
                        <p>
                            The Announcement of the Ministry of Finance on withdrawal of reservation made to
      Article 9 of the MLI and on additional notifications is published in the Treaty Series of the
      Statute Book of Finland SopS 48/2023. Link to Finnish language version
                            <a href="https://finlex.fi/fi/sopimukset/sopsteksti/2023/20230048/20230048_1">https://finlex.fi/fi/sopimukset/sopsteksti/2023/20230048/20230048_1</a>
                                  Link to Swedish language version
                            <a href="https://finlex.fi/sv/sopimukset/sopimussarja/2023/fds20230048.pdf">https://finlex.fi/sv/sopimukset/sopimussarja/2023/fds20230048.pdf</a>
                        </p>
                        <p>
                            The Announcement of the Ministry of Finance on the entry into force of the MLI in
      Hungary is published in the Treaty Series of the Statute Book of Finland SopS 37/2021. Link to
      Finnish language version
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/2021/20210037/20210037_1">https://finlex.fi/fi/sopimukset/sopsteksti/2021/20210037/20210037_1</a>
                                  Link to Swedish language version
                            <a href="https://www.finlex.fi/sv/sopimukset/sopimussarja/2021/fds20210037.pdf">https://finlex.fi/sv/sopimukset/sopimussarja/2021/fds20210037.pdf</a>
                        </p>
                        <p>
                            Convention between the Government of the Republic of Finland and the Government of the
      Hungarian People's Republic for the avoidance of double taxation with respect to taxes on
      income and on capital signed on 25 October 1978 is published in the Treaty Series of the
      Statute Book of Finland SopS 51/1981. Link to Finnish language version:
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/1981/19810051/19810051_2">https://www.finlex.fi/fi/sopimukset/sopsteksti/1981/19810051/19810051_2</a>
                        </p>
                    </tblock>
                </embeddedStructure>
            </p>
            <p class="title">Convention between The Government of The Republic of Finland and The Government of the Hungarian People's Republic for the avoidance of double taxation with respect to taxes on income and on capital</p>
            <p>The Government of the Republic of Finland and the Government of the Hungarian People's
    Republic,</p>
            <p>Mindful of the principles set forth in the Final Act of the Conference on Security and
    Cooperation in Europe and</p>
            <p>
                <embeddedStructure class="mli-replaced">
                    <p>
                        <authorialNote>
                            <p>[REPLACED by paragraph 1 of Article 6 of the MLI]</p>
                        </authorialNote>
                    </p>
                    <p>[desiring to conclude a Convention for the avoidance of double taxation with respect to
      taxes on income and on capital,]</p>
                </embeddedStructure>
            </p>
            <p>
                <embeddedStructure class="mli-replacement">
                    <p>
                        <authorialNote>
                            <p>
                                The following paragraph 1 of Article 6 of the MLI replaces the text referring to
      an intent to eliminate double taxation in the preamble of this Convention:
                                <authorialNote marker="1" placement="bottom">
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 6 of the MLI has effect with respect to the application of this Convention by the
          Republic of Finland:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
          levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                    <p>and,</p>
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 6 of the MLI has effect with respect to the application of the Convention by
          Hungary:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by Hungary, for taxes levied with
          respect to taxable periods beginning on or after 1 January 2022.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <article>
                        <num>ARTICLE 6 OF THE MLI – PURPOSE OF A COVERED TAX AGREEMENT</num>
                        <content>
                            <p>
                                Intending to eliminate double taxation with respect to the taxes covered by
          [
                                <i>this Convention</i>
                                ] without creating opportunities for non-taxation
        or reduced taxation through tax evasion or avoidance (including through treaty-shopping
        arrangements aimed at obtaining reliefs provided in [
                                <i>the Convention</i>
                                ]
        for the indirect benefit of residents of third jurisdictions),
                            </p>
                        </content>
                    </article>
                </embeddedStructure>
            </p>
            <p>Have agreed as follows:</p>
        </preamble>
        <mainBody>
            <article eId="art_1">
                <num>Article 1</num>
                <heading>Personal scope</heading>
                <content>
                    <p>This Convention shall apply to persons who are residents of one or both of the
      Contracting States.</p>
                </content>
            </article>
            <article eId="art_2">
                <num>Article 2</num>
                <heading>Taxes covered</heading>
                <content>
                    <p>1. This Convention shall apply to taxes on income and on capital imposed on behalf of
      each Contracting State or of its public communities or local authorities, irrespective of the
      manner in which they are levied.</p>
                    <p>2. There shall be regarded as taxes on income and on capital all taxes imposed on
      total income, on total capital, or on elements of income or of capital, including taxes on
      gains from the alienation of movable or immovable property, as well as taxes on capital
      appreciation.</p>
                    <p>3. The existing taxes to which the Convention shall apply are:</p>
                    <p>a) in Finland:</p>
                    <p>i) the state income and capital tax (tulo- ja varallisuusvero);</p>
                    <p>ii) the communal tax (kunnallisvero)</p>
                    <p>iii) the church tax (kirkollisvero);</p>
                    <p>iv) the sailors' tax (merimiesvero); and</p>
                    <p>v) the tax withheld at source from non-residents' income (lähdevero);</p>
                    <p>(hereinafter referred to as "Finnish tax");</p>
                    <p>b) in the Hungarian People’s Republic:</p>
                    <p>i) the income taxes (a jövedelemadók).</p>
                    <p>ii) the profit taxes (a nyereségadók);</p>
                    <p>iii) the enterprises' special tax (a vállalati különadó);</p>
                    <p>iv) the house tax (a házadó);</p>
                    <p>v) the tax on house values (a házérték adó);</p>
                    <p>vi) the ground tax (a telekadó);</p>
                    <p>vii) the contribution to communal development (a községfejlesztési
      hozzájárulás);</p>
                    <p>viii) the levy on dividends and profit distributions of commercial companies (a
      kereskedelmi tarsáságok osztalék és nyereség kifizetései utáni illeték);</p>
                    <p>(hereinafter referred to as "Hungarian tax").</p>
                    <p>4. The Convention shall apply also to any identical or substantially similar taxes
      which are imposed after the date of signature of this Convention in addition to, or in place
      of, the existing taxes. The competent authorities of the Contracting States shall notify each
      other of any significant changes which have been made in their respective taxation
      laws.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_1" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1981/51#protocol">Protocol</a>
                          to this Convention.
                </p>
            </tblock>
            <article eId="art_3">
                <num>Article 3</num>
                <heading>General definitions</heading>
                <content>
                    <p>1. For the purposes of this Convention, unless the context otherwise
      requires:</p>
                    <p>a) the term "Finland" means the Republic of Finland and, when used in a geographical
      sense, means the territory of the Republic of Finland, and any area adjacent to the
      territorial waters of the Republic of Finland within which, in accordance with international
      law and under the laws of Finland, the rights of Finland with respect to the exploration and
      exploitation of the natural resources of the sea bed and its sub-soil may be
      exercised;</p>
                    <p>b) the term "Hungarian People’s Republic", when used in a geographical sense, means
      the territory of the Hungarian People's Republic;</p>
                    <p>c) the terms "a Contracting State" and "the other Contracting State" mean Finland or
      the Hungarian People's Republic, as the context requires;</p>
                    <p>d) the term "person" comprises an individual, a company and any other body of
      persons;</p>
                    <p>e) the term "company" means any body corporate or any entity which is treated as a
      body corporate for tax purposes;</p>
                    <p>f) the terms "enterprise of a Contracting State" and "enterprise of the other
      Contracting State" mean respectively an enterprise carried on by a resident of a Contracting
      State and an enterprise carried on by a resident of the other Contracting State;</p>
                    <p>g) the term "national" means any individual possessing the nationality of a
      Contracting State, and any legal person, partnership and association deriving its status as
      such from the laws in force in a Contracting State;</p>
                    <p>h) The term "international traffic" means any transport by a ship, aircraft or
      road-transport vehicle operated by an enterprise which has its place of effective management
      in a Contracting State, except when the ship, aircraft or road-transport vehicle is operated
      solely between places in the other Contracting State;</p>
                    <p>i) the term "competent authority" means:</p>
                    <p>i) in Finland, the Ministry of Finance or its authorised representative;</p>
                    <p>ii) in the Hungarian People's Republic, the Minister of Finance or his authorised
      representative.</p>
                    <p>2. As regards the application of the Convention by a Contracting State any term not
      defined therein shall, unless the context otherwise requires, have the meaning which it has
      under the law of that State concerning the taxes to which the Convention applies.</p>
                </content>
            </article>
            <article eId="art_4">
                <num>Article 4</num>
                <heading>Fiscal domicile</heading>
                <content>
                    <p>1. For the purposes of this Convention, the term "resident of a Contracting State"
      means any person who, under the law of that State, is liable to taxation therein by reason of
      his domicile, residence, place of management or any other criterion of a similar nature. An
      undivided estate of a deceased person shall be deemed to be a resident of the Contracting
      State of which the deceased was a resident at the time of his death according to the preceding
      sentence or the provision of paragraph 2. However, this term does not include any person who
      is liable to taxation in that Contracting State in respect only of income from sources in that
      State or capital situated therein.</p>
                    <p>2. Where by reason of the provisions of paragraph 1 an individual is a resident of
      both Contracting States, then his status shall be determined as follows:</p>
                    <p>a) He shall be deemed to be a resident of the Contracting State in which he has a
      permanent home available to him. If he has a permanent home available to him in both
      Contracting States, he shall be deemed to be a resident of the Contracting State in which he
      has his centre of vital interests;</p>
                    <p>b) If the Contracting State in which he has his centre of vital interests cannot be
      determined, or if he has not a permanent home available to him in either Contracting State, he
      shall be deemed to be a resident of the Contracting State in which he has an habitual
      abode;</p>
                    <p>c) If he has an habitual abode in both Contracting States or in neither of them, he
      shall he deemed to be a resident of the Contracting State of which he is a
      national;</p>
                    <p>d) If he is a national of both Contracting States or of neither of them, the competent
      authorities of the Contracting States shall settle the question by mutual agreement in
      accordance with the provisions of Article 25.</p>
                    <p>3. Where by reason of the provisions of paragraph 1 a person other than an individual
      is a resident of both Contracting States, then it shall be deemed to be a resident of the
      Contracting States in which its place of effective management is situated.</p>
                </content>
            </article>
            <article eId="art_5">
                <num>Article 5</num>
                <heading>Permanent establishment</heading>
                <content>
                    <p>1. For the purposes of this Convention, the term "permanent establishment" means a
      fixed place of business or industrial activities through which these activities of the
      enterprise are wholly or partly carried on.</p>
                    <p>2. The term "permanent establishment" includes especially:</p>
                    <p>a) a place of management;</p>
                    <p>b) a branch;</p>
                    <p>c) an office;</p>
                    <p>d) a factory;</p>
                    <p>e) a workshop; and</p>
                    <p>f) a mine, an oil or gas well, a quarry or any other place of extraction of natural
      resources.</p>
                    <p>3. A building site or construction or installation project constitutes a permanent
      establishment only if it lasts more than 12 months.</p>
                    <p>4. Notwithstanding the preceding provisions of this Article the term "permanent
      establishment" shall be deemed not to include:</p>
                    <p>a) the use of facilities solely for the purpose of storage, display or delivery of
      goods or merchandise belonging to the enterprise;</p>
                    <p>b) the maintenance of a stock of goods or merchandise belonging to the enterprise
      solely for the purpose of storage, display or delivery;</p>
                    <p>c) the maintenance of a stock of goods or merchandise belonging to the enterprise
      solely for the purpose of processing by another enterprise;</p>
                    <p>d) the maintenance of a fixed place of business or industrial activities solely for
      the purpose of purchasing goods or merchandise or of collecting information, for the
      enterprise;</p>
                    <p>e) the maintenance of a fixed place of business or industrial activities solely for
      the purpose of carrying on, for the enterprise, any other activity of a preparatory or
      auxiliary character;</p>
                    <p>f) an installation project carried on by an enterprise of a Contracting State in
      connection with the delivery of machinery or equipment from that State to the other
      Contracting State;</p>
                    <p>g) the maintenance of a fixed place of business or industrial activities solely for
      any combination of activities mentioned in sub-paragraphs a) to f), provided that the overall
      activity of the fixed place of business or industrial activities resulting from this
      combination is of a preparatory or auxiliary character.</p>
                    <p>5. Notwithstanding the provisions of paragraphs 1 and 2, where a person − other than
      an agent of an independent status to whom paragraph 6 applies − is acting on behalf of an
      enterprise and has, and habitually exercises, in a Contracting State an authority to conclude
      contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent
      establishment in that State in respect of any activities which that person undertakes for the
      enterprise, unless the activities of such person are limited to those mentioned in paragraph 4
      which, if exercised through a fixed place of business, would not make this fixed place of
      business a permanent establishment under the provisions of that paragraph.</p>
                    <p>6. An enterprise shall not be deemed to have a permanent establishment in a
      Contracting State merely because it carries on business in that State through a broker,
      general commission agent or any other agent of an independent status, provided that such
      persons are acting in the ordinary course of their business.</p>
                    <p>7. The fact that a company which is a resident of a Contracting State controls or is
      controlled by a company which is a resident of the other Contracting State, or which carries
      on business in that other State (whether through a permanent establishment or otherwise),
      shall not of itself constitute either company a permanent establishment of the
      other.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_2" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1981/51#protocol">Protocol</a>
                          to this Convention. 
                </p>
            </tblock>
            <article eId="art_6">
                <num>Article 6</num>
                <heading>Income from immovable property</heading>
                <content>
                    <p>1. Income from immovable property including income from agriculture or forestry may be
      taxed in the Contracting State in which such property is situated.</p>
                    <p>2. a) The term "immovable property" shall, subject to the provisions of sub-paragraphs
      b) and c), be defined in accordance with the law of the Contracting State in which the
      property in question is situated.</p>
                    <p>b) The term "immovable property" shall in any case include property accessory to
      immovable property, livestock and equipment used in agriculture and forestry, rights to which
      the provisions of general law respecting landed property apply, usufruct of immovable property
      and rights to variable of fixed payments as consideration for the working of, or the right to
      work, mineral deposits, sources and other natural resources.</p>
                    <p>c) Ships and aircraft shall not be regarded as immovable property.</p>
                    <p>3. The provisions of paragraph 1 shall apply to income derived from the direct use,
      letting, or use in any other form of immovable property.</p>
                    <p>4. Where the ownership of shares or other corporate rights in a company entitles the
      owner of such shares or corporate rights to the enjoyment of immovable property owned by the
      company, the income from the direct use, letting, or use in any other form of such right to
      enjoyment may be taxed in the Contracting State in which the immovable property is
      situated.</p>
                    <p>5. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable
      property of an enterprise and to income from immovable property used for the performance of
      independent personal services.</p>
                    <p>The provisions of paragraph 4 shall likewise apply to the income from a right of
      enjoyment referred to in that paragraph of an enterprise and to income from such right of
      enjoyment used for the performance of independent personal services.</p>
                </content>
            </article>
            <article eId="art_7">
                <num>Article 7</num>
                <heading>Business profits</heading>
                <content>
                    <p>1. The profits of an enterprise of a Contracting State shall be taxable only in that
      State unless the enterprise carries on business in the other Contracting State through a
      permanent establishment situated therein. If the enterprise carries on business as aforesaid,
      the profits of the enterprise may be taxed in the other State but only so much of them as is
      attributable to that permanent establishment.</p>
                    <p>2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting
      State carries on business in the other Contracting State through a permanent establishment
      situated therein, there shall in each Contracting State be attributed to that permanent
      establishment the profits which it might be expected to make if it were a distinct and
      separate enterprise engaged in the same or similar activities under the same or similar
      conditions and dealing wholly independently with the enterprise of which it is a permanent
      establishment.</p>
                    <p>3. In determining the profits of a permanent establishment, there shall be allowed as
      deductions expenses which are incurred for the purposes of the permanent establishment,
      including executive and general administrative expenses so incurred, whether in the State in
      which the permanent establishment is situated or elsewhere.</p>
                    <p>4. No profits shall be attributed to a permanent establishment by reason of the mere
      purchase by that permanent establishment of goods or merchandise for the enterprise, or of the
      mere delivery to that permanent establishment of goods or merchandise for its use.</p>
                    <p>5. For the purposes of the preceding paragraphs, the profits to be attributed to the
      permanent establishment shall be determined by the same method year by year unless there is
      good and sufficient reason to the contrary.</p>
                    <p>6. Where profits include items of income which are dealt with separately in other
      Articles of this Convention, then the provisions of those Articles shall not be affected by
      the provisions of this Article.</p>
                </content>
            </article>
            <article eId="art_8">
                <num>Article 8</num>
                <heading>International transport</heading>
                <content>
                    <p>1. Profits from the operation of ships or aircraft in international traffic shall be
      taxable only in the Contracting State in which the place of effective management of the
      enterprise is situated.</p>
                    <p>2. If the place of effective management of a ship enterprise is aboard a ship, then it
      shall be deemed to be situated in the Contracting State in which the home harbour of the ship
      is situated, or, if there is no such home harbour, in the Contracting State of which the
      operator of the ship is a resident.</p>
                    <p>3. Profits from the operation of road-transport vehicles in international traffic
      shall be taxable only in the Contracting State in which the place of effective management of
      the enterprise is situated unless the enterprise carries on activities referred to in this
      paragraph in the other Contracting State through a permanent establishment situated therein.
      If the enterprise carries on business as aforesaid, the provisions of Article 7 shall
      apply.</p>
                    <p>4. The provisions of paragraph 1 shall also apply to profits derived from the
      participation in a pool, a joint venture or an international operating agency.</p>
                    <p>5. The provisions of paragraphs 1, 3 and 4 shall also apply to auxiliary activities
      directly connected with the operation of ships, aircraft or road-transport vehicles in
      international traffic.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_3" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1981/51#protocol">Protocol</a>
                          to this Convention. 
                </p>
            </tblock>
            <article eId="art_9">
                <num>Article 9</num>
                <heading>Associated enterprises</heading>
                <content>
                    <p>Where</p>
                    <p>a) an enterprise of a Contracting State participates directly or indirectly in the
      management, control or capital of an enterprise of the other Contracting State, or</p>
                    <p>b) the same persons participate directly or indirectly in the management, control or
      capital of an enterprise of a Contracting State and ao enterprise of the other Contracting
      State,</p>
                    <p>and in either case conditions are made or imposed between the two enterprises in their
      commercial or financial relations which differ from those which would be made between
      independent enterprises, then any profits which would, but for those conditions, have accrued
      to one of the enterprises, but, by reason of those conditions, have not so accrued, may be
      included in the profits of that enterprise and taxed accordingly.</p>
                </content>
            </article>
            <p>
                <embeddedStructure class="mli-replacement">
                    <p>
                        <authorialNote>
                            <p>
                                The following paragraph 1 of Article 17 of the MLI applies and supersedes the
      provisions of this Convention:
                                <authorialNote marker="2" placement="bottom">
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 17 of the MLI has effect with respect to the application of this Convention by the
          Republic of Finland:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
          levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                    <p>and,</p>
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 17 of the MLI has effect with respect to the application of the Convention by
          Hungary:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by Hungary, for taxes levied with
          respect to taxable periods beginning on or after 1 January 2022.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <article>
                        <num>ARTICLE 17 OF THE MLI – CORRESPONDING ADJUSTMENTS</num>
                        <content>
                            <p>
                                Where a [
                                <i>Contracting State</i>
                                ] includes in the profits of an
        enterprise of that [
                                <i>Contracting State</i>
                                ] – and taxes accordingly –
        profits on which an enterprise of the other [
                                <i>Contracting State</i>
                                ] has
        been charged to tax in that other [
                                <i>Contracting State</i>
                                ] and the profits
        so included are profits which would have accrued to the enterprise of the first-mentioned
          [
                                <i>Contracting State</i>
                                ] if the conditions made between the two
        enterprises had been those which would have been made between independent enterprises, then
        that other [
                                <i>Contracting State</i>
                                ] shall make an appropriate adjustment
        to the amount of the tax charged therein on those profits. In determining such adjustment,
        due regard shall be had to the other provisions of [
                                <i>the Convention</i>
                                ]
        and the competent authorities of the [
                                <i>Contracting States</i>
                                ] shall if
        necessary consult each other.
                            </p>
                        </content>
                    </article>
                </embeddedStructure>
            </p>
            <article eId="art_10">
                <num>Article 10</num>
                <heading>Dividends</heading>
                <content>
                    <p>1 Dividends paid by a company which is a resident of a Contracting State to a resident
      of the other Contracting State may be taxed in that other State.</p>
                    <p>2. However, such dividends may also be taxed in the Contracting State of which the
      company paying the dividends is a resident, and according to the law of that State, but the
      tax so charged shall not exceed:</p>
                    <p>a) 5 per cent of the gross amount of the dividends if the recipient is a company
      (excluding partnership) which holds directly at least 25 per cent of the capital of the
      company paying the dividends;</p>
                    <p>b) 15 per cent of the gross amount of the dividends in all other cases.</p>
                    <p>The competent authorities of the Contracting States shall by mutual agreement settle
      the mode of application of this limitation.</p>
                    <p>This paragraph shall not affect the taxation of the Company in respect of the profits
      out of which the dividends are paid.</p>
                    <p>3. The term "dividends" as used in this Article means income from shares or other
      rights, not being debt-claims, participating in profits, as well as income from other
      corporate rights which is subjected to the same taxation treatment as income from shares by
      the taxation law of the State of which the company making the distribution is a
      resident.</p>
                    <p>4. The provisions of paragraphs 1·and 2 shall not apply if the recipient of the
      dividends, being a resident of a Contracting State, carries on business in the other
      Contracting State of which the company paying the dividends is a resident, through a permanent
      establishment situated therein, or performs in that other State independent personal services
      from a fixed base situated therein and the holding in respect of which the dividends are paid
      is effectively connected with such permanent establishment or fixed base. In such a case, the
      provisions of Article 7 or Article 14, as the case may be, shall apply.</p>
                    <p>5. Where a company which is a resident of a Contracting State derives profits or
      income from the other Contracting State, that other State may not impose any tax on the
      dividends paid by the company, except insofar as such dividends are paid to a resident of that
      other State or insofar as the holding in respect of which the dividends are paid is
      effectively connected with a permanent establishment or a fixed base situated in that other
      State, not subject the company's undistributed profits to a tax on the company's undistributed
      profits, even if the dividends paid or the undistributed profits consist wholly or partly of
      profits or.income arising in such other State.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_4" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1981/51#protocol">Protocol</a>
                          to this Convention. 
                </p>
            </tblock>
            <article eId="art_11">
                <num>Article 11</num>
                <heading>Interest</heading>
                <content>
                    <p>1. Interest arising in a Contracting State and paid to a resident of the other
      Contracting State shall be taxabel only in that other State.</p>
                    <p>2. The term "interest" as used in this Article means income from debt-claims of every
      kind, whether or not secured by mortgage, and whether or not carrying a right to participate
      in the debtor's profits, and in particular, income from government t securities and income
      from bonds or debentures, including premiums and prizes attaching to bonds or
      debentures.</p>
                    <p>3. The provisions of paragraph 1 shall not apply if the recipient of the interest,
      being a resident of a Contracting State, carries on business in the other Contracting State in
      which the interest arises, through a permanent establishment situated therein, or performs in
      that other State independent personal services from a fixed base situated therein, and the
      debt-claim in respect of which the interest is paid is effectively connected with such
      permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article
      14, as the case may be, shall apply.</p>
                    <p>4. Where owning to a special relationship between the payer and the recipient or
      between both of them and some other person, the amount of the interest paid, having regard to
      the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by
      the payer and the recipient in the absence of such relationship, the provisions of this
      Article shall apply only to the last-mentioned amount. In that case, the excess part of the
      payments shall remain taxable according to the law of each Contracting State, due regard being
      had to the other provisions of this Convention.</p>
                </content>
            </article>
            <article eId="art_12">
                <num>Article 12</num>
                <heading>Royalties</heading>
                <content>
                    <p>1. Royalties arising in a Contracting State and paid to a resident of the other
      Contracting State may be taxed in that other State.</p>
                    <p>2. However, royalties of the kind referred to in sub-paragraphs b) and c) of paragraph
      3 may be taxed in the Contracting State in which they arise, and according to the law of that
      State, but the tax so charged shall not exceed 5 per cent of the gross amount of the
      royalties. The competent authorities of the Contracting States shall by mutual agreement
      settle the made of application of this limitation.</p>
                    <p>3 The term "royalties" as used in this Article means payments of any kind received as
      a consideration</p>
                    <p>a) for the use of, or the right to use, any copyright of literary, artistic or
      scientific work including cinematograph films, and films or tapes for television or radio
      broadcasting;</p>
                    <p>b) for the use of, or the right to use, any patent, trade mark, design or model, plan,
      secret formula or process, or any industrial, commercial, or scientific equipment;</p>
                    <p>c) for information concerning industrial, commercial, or scientific
      experience.</p>
                    <p>4. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the
      royalties, being a resident of a Contracting State, carries on business in the other
      Contracting State, in which the royalties arise, through a permanent establishment situated
      therein, or performs in that other State independent personal services from a fixed base
      situated therein, and the right or property in respect of which the royalties are paid is
      effectively connected with such permanent establishment or fixed base. In such a case the
      provisions of Article 7 or Article 14, as the case may be, shall apply.</p>
                    <p>5. Royalties shall be deemed to arise in a Contracting State when the payer is that
      State itself, a public community, a local authority or a resident of that State. Where,
      however, the person paying the royalties, whether he is a resident of Contracting State or
      not, has in a Contracting State a permanent establishment in connection with which the
      liability to pay the royalties was incurred, and such royalties are borne by such permanent
      establishment, then such royalties shall be deemed to arise in the Contracting State in which
      the permanent establishment is situated.</p>
                    <p>6. Where, owing to a special relationship between the payer and the recipient or
      between both of them and some other person, the amount of the royalties paid, having regard to
      the use, right or information for which they are paid, exceeds the amount which would have
      been agreed upon by the payer and the recipient in the absence of such relationship, the
      provisions of this Article shall apply only to the last-mentioned amount. In that case, the
      excess part of the payments shall remain taxable according to the law of each Contracting
      State, due regard being had to the other provisions of this Convention.</p>
                </content>
            </article>
            <article eId="art_13">
                <num>Article 13</num>
                <heading>Capital gains</heading>
                <content>
                    <p>1. Gains from the alienation of immovable property, as defined in paragraph 2 of
      Article 6, may be taxed in the Contracting State in which such property is
      situated.</p>
                    <p>2. Gains from the alienation of shares or other corporate rights referred to in
      paragraph 4 of Article 6 may be taxed in the Contracting State in which the immovable property
      owned by the company is situated.</p>
                    <p>3. Gains from the alienation of movable property forming part of the business property
      of a permanent establishment which an enterprise of a Contracting State has in the other
      Contracting State or of movable property pertaining to a fixed base available to a Contracting
      State in the other Contracting State for the purpose of performing independent personal
      services, including such gains from the alienation of such a permanent establishment (alone or
      with the whole enterprise) or of such fixed base, may be taxed in that other State.</p>
                    <p>4. Gains from the alienation of ships, aircraft or road-transport vehicles operated in
      international traffic or movable property pertaining to the operation of such ships, aircraft
      or vehicles, shall be taxable only in the Contracting State in which the place of effective
      management of the enterprise is situated.</p>
                    <p>5. Gains from the alienation of any property other than that referred to in the
      preceding paragraphs, shall be taxable only in the Contracting State of which the alienator is
      a resident.</p>
                </content>
            </article>
            <article eId="art_14">
                <num>Article 14</num>
                <heading>Independent personal services</heading>
                <content>
                    <p>1. Income derived by a resident of a Contracting State in respect of professional
      services or other activities of an independent character shall be taxable only in that State
      unless he has a fixed base regularly available to him in the other Contracting State for the
      purpose of performing his activities. If he has such a fixed base, the income may be taxed in
      the other Contracting State but only so much of it as is attributable to that fixed
      base.</p>
                    <p>2. The term "professional services" includes especially independent scientific,
      literary, artistic, educational or teaching activities as well as the independent activities
      of physicians, lawyers, engineers, architects, dentists and accountants.</p>
                </content>
            </article>
            <article eId="art_15">
                <num>Article 15</num>
                <heading>Dependent personal services</heading>
                <content>
                    <p>1. Subject to the provisions of Articles 16, 18, 19 and 20, salaries, wages and other
      similar remuneration derived by a resident of a Contracting State in respect of an employment
      shall be taxable only in that State unless the employment is exercised in the other
      Contracting State. If the employment is so exercised, such remuneration as is derived
      therefrom may be taxed in that other State.</p>
                    <p>2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident
      of a Contracting State in respect of an employment exercised in the other Contracting State
      shall be taxable only in the first-mentioned State if:</p>
                    <p>a) the recipient is present in the other State for a period or periods not exceeding
      in the aggregate 183 days in the calendar year concerned, and</p>
                    <p>b) the remuneration is paid by, or on behalf of, an employer who is not a resident of
      the other State, and</p>
                    <p>c) the remuneration is not borne by permanent establishment or a fixed base which the
      employer has in the other State.</p>
                    <p>3 Notwithstanding the preceding provisions of this Article, remuneration in respect of
      an employment exercised aboard a ship or aircraft in international traffic, may be taxed in
      the Contracting State in which the place of effective management of the enterprise is
      situated.</p>
                </content>
            </article>
            <article eId="art_16">
                <num>Article 16</num>
                <heading>Directors' fees</heading>
                <content>
                    <p>Directors' fees and similar payments derived by a resident of a Contracting State in
      his capacity as a member of the board of directors or any other similar organ of a company
      which is a resident of the other Contracting State may be taxed in that other
      State.</p>
                </content>
            </article>
            <article eId="art_17">
                <num>Article 17</num>
                <heading>Artistes and athletes</heading>
                <content>
                    <p>1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident
      of a Contracting State as an entertainer, such as a theatre, motion picture, radio or
      television artiste, or a musician, or as an athlete, from his personal activities as such
      exercised in the other Contracting State, may be taxed in that other State.</p>
                    <p>2. Where income in respect of personal activities exercised by an entertainer or an
      athlete in his capacity as such accrues not to the entertainer or athlete himself but to
      another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be
      taxed in the Contracting State in which the activities of the entertainer or athlete are
      exercised, if that person is directly or indirectly controlled by the entertainer or
      athlete.</p>
                    <p>3. Notwithstanding the provisions of paragraph 1, income derived by a resident of a
      Contracting State from activities referred to in paragraph 1 and exercised in the other
      Contracting State under a cultural agreement or arrangement between the Contracting States,
      shall not be taxed in that other State.</p>
                </content>
            </article>
            <article eId="art_18">
                <num>Article 18</num>
                <heading>Pensions</heading>
                <content>
                    <p>1. Subject to the provisions of paragraph 2 of this Article or paragraph 2 of Article
      19, pensions and other similar remuneration paid to a resident of a Contracting State in
      consideration of past employment shall be taxable only in that State.</p>
                    <p>2. Subject to the provisions of paragraph 2 of Article 19, pensions and other payments
      made under the social security legislation of a Contracting State shall be taxable only in
      that State.</p>
                </content>
            </article>
            <article eId="art_19">
                <num>Article 19</num>
                <heading>Government service</heading>
                <content>
                    <p>1. a) Remuneration, other than a pension, paid by a Contracting State or a public
      community or a local authority thereof to any individual in respect of services rendered to
      that State or community or local authority thereof shall be taxable only in that
      State.</p>
                    <p>b) However, such remuneration shall be taxable only in the Contracting State of which
      the recipient is a resident if the services are rendered in that State and the
      recipient:</p>
                    <p>i) is a national of that State; or</p>
                    <p>ii) did not become a resident of that State solely for the purpose of performing the
      services.</p>
                    <p>2. a) Any pension paid by, or out of funds created by, a Contracting State or a public
      community or a local authority thereof to any individual in respect of services rendered to
      that State or community or local authority thereof shall be taxable only in that
      State.</p>
                    <p>b) However, such pension shall be taxable only in the Contracting State of which the
      recipient is a resident if he is a national of that State.</p>
                    <p>3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions
      in respect of services rendered in connection with any business or industrial activities
      carried on by a Contracting State or a public community or a local authority
      thereof.</p>
                </content>
            </article>
            <article eId="art_20">
                <num>Article 20</num>
                <heading>Students</heading>
                <content>
                    <p>1. Payments which a student or business, technical, agricultural or forestry
      apprentice who is or was immediately before visiting a Contracting State a resident of the
      other Contracting State and who is present in the first-mentioned Contracting State solely for
      the purpose of his education or training receives for the purpose of his maintenance,
      education or training shall not be taxed in that State, provided that such payments are made
      to him from sources outside that State. Income derived by such a student from a scholarship
      held by him for the purpose of his full time education at a university or other institution
      for higher education, or by such an apprentice for his training shall be exempt from tax on
      that income in the Contracting State which he is visiting.</p>
                    <p>2. A student at a university or other institution for higher education in a
      Contracting State, or a business, technical, agricultural or forestry apprentice who is or was
      immediately before visiting the other Contracting State a resident of the first-mentioned
      State and who is present in the other Contracting State for a period or periods not exceeding
      in the aggregate 183 days in the calendar year concerned, shall not be taxed in that other
      State in respect of remuneration for services rendered in that State, provided that the
      services are in connection with his studies or training and the remuneration constitutes
      earnings necessary for his maintenance.</p>
                </content>
            </article>
            <article eId="art_21">
                <num>Article 21</num>
                <heading>Other income</heading>
                <content>
                    <p>1. Items of income of a resident of a Contracting State, wherever arising, not dealt
      with in the foregoing Articles of this Convention shall be taxable only in that
      State.</p>
                    <p>2. The provisions of paragraph 1 shall not apply if the recipient of the income, being
      a resident of a Contracting State, carries on business in the other Contracting State through
      a permanent establishment situated therein, or performs in that other State independent
      personal services from a fixed base situated therein, and the right or property in respect of
      which the income is paid is effectively connected with such permanent establishment or fixed
      base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall
      apply.</p>
                </content>
            </article>
            <article eId="art_22">
                <num>Article 22</num>
                <heading>Capital</heading>
                <content>
                    <p>1. Capital represented by immovable property, as defined in paragraph 2 of Article 6,
      may be taxed in the Contracting State in which such property is situated.</p>
                    <p>2. Capital represented by shares or other corporate rights referred to in paragraph 4
      of Article 6 may be taxed in the Contracting State in which the immovable property owned by
      the company is situated.</p>
                    <p>3. Capital represented by movable property forming part of the business property of a
      permanent establishment which an enterprise of a Contracting State has in the other
      Contracting State or by movable property pertaining to a fixed base available to a resident of
      a Contracting State in the other Contracting State for the purpose of performing independent
      personal services, may be taxed in that other State.</p>
                    <p>4. Capital represented by ships, aircraft and road-transport vehicles operated in
      international traffic, and movable property pertaining to the operation of such ships,
      aircraft and vehicles shall be taxable only in the Contracting State in which the place of
      effective management of the enterprise is situated.</p>
                    <p>5. All other elements of capital of a resident of a Contracting State shall be taxable
      only in that State.</p>
                </content>
            </article>
            <article eId="art_23">
                <num>Article 23</num>
                <heading>Elimination of double Taxation</heading>
                <content>
                    <p>1. In Finland double taxation shall be eliminated as follows:</p>
                    <p>a) Where a resident of Finland derives income or owns capital which in accordance with
      the provisions of this Convention, may be taxed in the Hungarian People's Republic, Finland
      shall allow:</p>
                    <p>i) as a deduction from the taxes on income of that person, an amount equal to the
      taxes on income paid in the Hungarian People's Republic,</p>
                    <p>ii) as a deduction from the tax on capital of that person, an amount equal to the
      taxes on capital paid in the Hungarian People's Republic.</p>
                    <p>The deduction in either case shall not, however, exceed. that part of the taxes on
      income or on capital, respectively, as computed before the deduction is given, which is
      appropriate, as the case may be, to the income or the capital which may be taxed in the
      Hungarian People's Republic.</p>
                    <p>b) Dividends paid by a company which is a resident of the Hungarian People's Republic
      to a company which is a resident of Finland shall be exempt from Finnish tax to the extent
      that the dividends would have been exempt from tax under Finnish taxation law if both
      companies had been residents of Finland.</p>
                    <p>2. In the Hungarian People's Republic double taxation shall be eliminated as
      follows:</p>
                    <p>a) Where a resident of the Hungarian People's Republic derives income or owns capital
      which, in accordance with the provisions of this Convention may be taxed in Finland, the
      Hungarian People's Republic shall, subject to the provisions of sub-paragraphs b) and c),
      exempt such income or capital from tax.</p>
                    <p>b) Where a resident of the Hungarian People's Republic derives items of income which
      in accordance with the provisions of Articles 10 and 12, may be taxed in Finland, the
      Hungarian People's Republic shall allow as a deduction from the tax on the income of that
      resident an amount equal to the tax paid in Finland. Such deduction shall not, however exceed
      that part of the tax, as computed before the deduction is given which is attributable to such
      items of income derived from Finland.</p>
                    <p>c) Where in accordance with any provision the Convention income derived or capital
      owned by a resident of the Hungarian People's Republic is exempt from tax in the Hungarian
      People's Republic, the Hungarian People's Republic may nevertheless, in calculating the amount
      of tax on the remaining income or capital of such resident, take into account the exempted
      income or capital.</p>
                </content>
            </article>
            <article eId="art_24">
                <num>Article 24</num>
                <heading>Non-discrimination</heading>
                <content>
                    <p>1. Nationals of a Contracting State shall not be subjected in the other Contracting
      State to any taxation or any requirement connected therewith which is other or more burdensome
      than the taxation and connected requirements to which nationals of that other State in the
      same circumstances are or may be subjected. This provision shall, notwithstanding the
      provisions of Article 1, also apply to persons who are not residents of one or both of the
      Contracting States.</p>
                    <p>2. The taxation on a permanent establishment which an enterprise of a Contracting
      State has in the other Contracting State shall not be less favourably levied in that other
      State than the taxation levied on enterprises of that other State carrying on the same
      activities. This provision shall not be construed as obliging a Contracting State to grant to
      residents of the other Contracting State any personal allowances, reliefs and reductions for
      taxation purposes on account of civil status or family responsibilities which it grants to its
      own residents.</p>
                    <p>3. Except where the provisions of Article 9, paragraph 4 of Article 11, or paragraph 6
      of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a
      Contracting State to a resident of the other Contracting State shall, for the purpose of
      determining the taxable profits of such enterprise, be deductible under the same conditions as
      if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an
      enterprise of a Contracting State toe a resident of the other Contracting State shall, for the
      purpose of determining the taxable capital of such enterprise, be deductible under the same
      conditions as if they had been contracted to a resident of the first-mentioned
      State.</p>
                    <p>4. Enterprises of a Contracting State the capital of which is wholly or partly owned
      or controlled, directly or indirectly, by one or more residents of the other Contracting
      State, shall not be subjected in the first-mentioned, Contracting State to any taxation or any
      requirement connected therewith which is more burdensome than the taxation and connected
      requirements to which other similar enterprises of that first-mentioned State are or may be
      subjected.</p>
                    <p>5. The provisions of this Article shall, notwithstanding the provisions of Article 2,
      apply to taxes of every kind and description.</p>
                </content>
            </article>
            <article eId="art_25">
                <num>Article 25</num>
                <heading>Mutual agreement procedure</heading>
                <content>
                    <p>1. Where a person considers that the actions of one or both of the Contracting States
      result or will result for him in taxation not in accordance with the provisions of this
      Convention, he may, irrespective of the remedies provided by the domestic law of those States,
      present his case to the competent authority of the Contracting State of which he is a resident
      or, if his case comes under paragraph 1 of Article 24, to that of the Contracting State of
      which he is a national. The case must be presented within three years from the first
      notification of the action resulting in taxation not in accordance with the provisions of the
      Convention.</p>
                    <p>2. The competent authority shall endeavour, if the objection appears to it to be
      justified and if it is not itself able to arrive at satisfactory solution, to resolve the case
      by mutual agreement with the competent authority of the other Contracting State, with a view
      to the avoidance of taxation which is not in accordance with the Convention. Any agreement
      reached shall be implemented notwithstanding any time limits in the domestic law of the
      Contracting States.</p>
                    <p>3, The competent authorities of the Contracting States shall endeavour to resolve by
      mutual agreement any difficulties or doubts arising as to the interpretation or application of
      the Convention. They may also consult together for the elimination of double taxation in cases
      not provided for in the Convention.</p>
                    <p>4. The competent authorities of the Contracting States may communicate with each other
      directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.
      When it seems advisable in order to reach agreement to have an oral exchange of opinions, such
      exchange may take place through a Commissions consisting of representatives of the competent
      authorities of the Contracting States.</p>
                </content>
            </article>
            <p>
                <embeddedStructure class="mli-addition">
                    <p>
                        <authorialNote>
                            <p>
                                The following Part VI of the MLI applies to this Convention:
                                <authorialNote marker="3" placement="bottom">
                                    <p>In accordance with paragraph 1 of Article 36 of the MLI, the provisions of Part VI
          (Arbitration) of the MLI has effect with respect to this Convention with respect to cases
          presented to the competent authority of a Contracting State on or after 1 July
          2021.</p>
                                    <p>In accordance with paragraph 2 of Article 36 of the MLI, the provisions of Part VI
          (Arbitration) of the MLI apply to a case presented to the competent authority of a
          Contracting State prior to 1 July 2021 only to the extent that the competent authorities
          of both Contracting States agree that it will apply to that specific case.</p>
                                    <p>However, the scope of cases eligible for arbitration under the provisions of Part
          VI of the MLI is limited due to reservations formulated in accordance with subparagraph a)
          of paragraph 2 of Article 28 of the MLI by the Contracting States. See these reservations
          at the end of this box.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <chapter>
                        <num>PART VI. ARBITRATION</num>
                        <article>
                            <num>Article 19 (Mandatory Binding Arbitration) of the MLI</num>
                            <content>
                                <p>1. Where:</p>
                                <p>
                                    a) under [
                                    <i>paragraph 1 of Article 25 of this Convention</i>
                                    ], a
          person has presented a case to the competent authority of a [
                                    <i>Contracting
            State</i>
                                    ] on the basis that the actions of one or both of the
            [
                                    <i>Contracting States</i>
                                    ] have resulted for that person in taxation
          not in accordance with the provisions of [
                                    <i>the Convention</i>
                                    ];
          and
                                </p>
                                <p>
                                    b) the competent authorities are unable to reach an agreement to resolve that case
          pursuant to [
                                    <i>paragraph 2 of Article 25 of the Convention</i>
                                    ], within a
          period of two years beginning on the start date referred to in paragraph 8 or 9
            [
                                    <i>of Article 19 of the MLI</i>
                                    ], as the case may be (unless, prior to
          the expiration of that period the competent authorities of the [
                                    <i>Contracting
            States</i>
                                    ] have agreed to a different time period with respect to that case and
          have notified the person who presented the case of such agreement),
                                </p>
                                <p>
                                    any unresolved issues arising from the case shall, if the person so requests in
          writing, be submitted to arbitration in the manner described in [
                                    <i>Part VI of the
            MLI</i>
                                    ], according to any rules or procedures agreed upon by the competent
          authorities of the [
                                    <i>Contracting States</i>
                                    ] pursuant to the provisions
          of paragraph 10 [
                                    <i>of Article 19 of the MLI</i>
                                    ].
                                </p>
                                <p>
                                    2. Where a competent authority has suspended the mutual agreement procedure
          referred to in paragraph 1 [
                                    <i>of Article 19 of the MLI</i>
                                    ] because a
          case with respect to one or more of the same issues is pending before court or
          administrative tribunal, the period provided in subparagraph b) of paragraph 1
            [
                                    <i>of Article 19 of the MLI</i>
                                    ] will stop running until either a final
          decision has been rendered by the court or administrative tribunal or the case has been
          suspended or withdrawn. In addition, where a person who presented a case and a competent
          authority have agreed to suspend the mutual agreement procedure, the period provided in
          subparagraph b) of paragraph 1 [
                                    <i>of Article 19 of the MLI</i>
                                    ] will stop
          running until the suspension has been lifted.
                                </p>
                                <p>
                                    3. Where both competent authorities agree that a person directly affected by the
          case has failed to provide in a timely manner any additional material information
          requested by either competent authority after the start of the period provided in
          subparagraph b) of paragraph 1 [
                                    <i>of Article 19 of the MLI</i>
                                    ], the
          period provided in subparagraph b) of paragraph 1 [
                                    <i>of Article 19 of the
            MLI</i>
                                    ] shall be extended for an amount of time equal to the period beginning
          on the date by which the information was requested and ending on the date on which that
          information was provided.
                                </p>
                                <p>
                                    4. a) The arbitration decision with respect to the issues submitted to arbitration
          shall be implemented through the mutual agreement concerning the case referred to in
          paragraph 1 [
                                    <i>of Article 19 of the MLI</i>
                                    ]. The arbitration decision
          shall be final.
                                </p>
                                <p>
                                    b) The arbitration decision shall be binding on both [
                                    <i>Contracting
            States</i>
                                    ] except in the following cases:
                                </p>
                                <p>i) if a person directly affected by the case does not accept the mutual agreement
          that implements the arbitration decision. In such a case, the case shall not be eligible
          for any further consideration by the competent authorities. The mutual agreement that
          implements the arbitration decision on the case shall be considered not to be accepted by
          a person directly affected by the case if any person directly affected by the case does
          not, within 60 days after the date on which notification of the mutual agreement is sent
          to the person, withdraw all issues resolved in the mutual agreement implementing the
          arbitration decision from consideration by any court or administrative tribunal or
          otherwise terminate any pending court or administrative proceedings with respect to such
          issues in a manner consistent with that mutual agreement.</p>
                                <p>
                                    ii) if a final decision of the courts of one of the [
                                    <i>Contracting
            States</i>
                                    ] holds that the arbitration decision is invalid. In such a case, the
          request for arbitration under paragraph 1 [
                                    <i>of Article 19 of the
          MLI</i>
                                    ] shall be considered not to have been made, and the arbitration process
          shall be considered not to have taken place (except for the purposes of Articles 21
          (Confidentiality of Arbitration Proceedings) and 25 (Costs of Arbitration Proceedings)
            [
                                    <i>of the MLI</i>
                                    ]). In such a case, a new request for arbitration may
          be made unless the competent authorities agree that such a new request should not be
          permitted.
                                </p>
                                <p>iii) if a person directly affected by the case pursues litigation on the issues
          which were resolved in the mutual agreement implementing the arbitration decision in any
          court or administrative tribunal.</p>
                                <p>
                                    5. The competent authority that received the initial request for a mutual
          agreement procedure as described in subparagraph a) of paragraph 1 [
                                    <i>of Article
            19 of the MLI</i>
                                    ] shall, within two calendar months of receiving the
          request:
                                </p>
                                <p>a) send a notification to the person who presented the case that it has received
          the request; and</p>
                                <p>
                                    b) send a notification of that request, along with a copy of the request, to the
          competent authority of the other [
                                    <i>Contracting State</i>
                                    ].
                                </p>
                                <p>
                                    6. Within three calendar months after a competent authority receives the request
          for a mutual agreement procedure (or a copy thereof from the competent authority of the
          other [
                                    <i>Contracting State</i>
                                    ]) it shall either:
                                </p>
                                <p>a) notify the person who has presented the case and the other competent authority
          that it has received the information necessary to undertake substantive consideration of
          the case; or</p>
                                <p>b) request additional information from that person for that purpose.</p>
                                <p>
                                    7. Where pursuant to subparagraph b) of paragraph 6 [
                                    <i>of Article 19 of
            the MLI</i>
                                    ], one or both of the competent authorities have requested from the
          person who presented the case additional information necessary to undertake substantive
          consideration of the case, the competent authority that requested the additional
          information shall, within three calendar months of receiving the additional information
          from that person, notify that person and the other competent authority either:
                                </p>
                                <p>a) that it has received the requested information; or</p>
                                <p>b) that some of the requested information is still missing.</p>
                                <p>
                                    8. Where neither competent authority has requested additional information pursuant
          to subparagraph b) of paragraph 6 [
                                    <i>of Article 19 of the MLI</i>
                                    ], the
          start date referred to in paragraph 1 [
                                    <i>of Article 19 of the MLI</i>
                                    ]
          shall be the earlier of:
                                </p>
                                <p>
                                    a) the date on which both competent authorities have notified the person who
          presented the case pursuant to subparagraph a) of paragraph 6 [
                                    <i>of Article 19 of
            the MLI</i>
                                    ]; and
                                </p>
                                <p>
                                    b) the date that is three calendar months after the notification to the competent
          authority of the other [
                                    <i>Contracting State</i>
                                    ] pursuant to subparagraph
          b) of paragraph 5 [
                                    <i>of Article 19 of the MLI</i>
                                    ].
                                </p>
                                <p>
                                    9. Where additional information has been requested pursuant to subparagraph b) of
          paragraph 6 [
                                    <i>of Article 19 of the MLI</i>
                                    ], the start date referred to
          in paragraph 1 [
                                    <i>of Article 19 of the MLI</i>
                                    ] shall be the earlier
          of:
                                </p>
                                <p>
                                    a) the latest date on which the competent authorities that requested additional
          information have notified the person who presented the case and the other competent
          authority pursuant to subparagraph a) of paragraph 7 [
                                    <i>of Article 19 of the
            MLI</i>
                                    ]; and
                                </p>
                                <p>b) the date that is three calendar months after both competent authorities have
          received all information requested by either competent authority from the person who
          presented the case.</p>
                                <p>
                                    If, however, one or both of the competent authorities send the notification
          referred to in subparagraph b) of paragraph 7 [
                                    <i>of Article 19 of the
            MLI</i>
                                    ], such notification shall be treated as a request for additional
          information under subparagraph b) of paragraph 6 [
                                    <i>of Article 19 of the
            MLI</i>
                                    ].
                                </p>
                                <p>
                                    10. The competent authorities of the [
                                    <i>Contracting States</i>
                                    ]
          shall by mutual agreement pursuant to [
                                    <i>Article 25 of the
          Convention</i>
                                    ] settle the mode of application of the provisions contained in
            [
                                    <i>Part VI of the MLI</i>
                                    ], including the minimum information necessary
          for each competent authority to undertake substantive consideration of the case. Such an
          agreement shall be concluded before the date on which unresolved issues in a case are
          first eligible to be submitted to arbitration and may be modified from time to time
          thereafter.
                                </p>
                                <p>
                                    12. [
                                    <i>Notwithstanding</i>
                                    ] the other provisions of
            [
                                    <i>Article 19 of the MLI</i>
                                    ]:
                                </p>
                                <p>
                                    a) any unresolved issue arising from a mutual agreement procedure case otherwise
          within the scope of the arbitration process provided for by [
                                    <i>the
            MLI</i>
                                    ] shall not be submitted to arbitration, if a decision on this issue has
          already been rendered by a court or administrative tribunal of either
            [
                                    <i>Contracting State</i>
                                    ];
                                </p>
                                <p>
                                    b) if, at any time after a request for arbitration has been made and before the
          arbitration panel has delivered its decision to the competent authorities of the
            [
                                    <i>Contracting States</i>
                                    ], a decision concerning the issue is rendered
          by a court or administrative tribunal of one of the [
                                    <i>Contracting
            States</i>
                                    ], the arbitration process shall terminate.
                                </p>
                            </content>
                        </article>
                        <article>
                            <num>Article 20 (Appointment of Arbitrators) of the MLI</num>
                            <content>
                                <p>
                                    1. Except to the extent that the competent authorities of the
            [
                                    <i>Contracting States</i>
                                    ] mutually agree on different rules,
          paragraphs 2 through 4 [
                                    <i>of Article 20 of the MLI</i>
                                    ] shall apply for
          the purposes of [
                                    <i>Part VI of the MLI</i>
                                    ].
                                </p>
                                <p>2. The following rules shall govern the appointment of the members of an
          arbitration panel:</p>
                                <p>a) The arbitration panel shall consist of three individual members with expertise
          or experience in international tax matters.</p>
                                <p>
                                    b) Each competent authority shall appoint one panel member within 60 days of the
          date of the request for arbitration under paragraph 1 of Article 19 [
                                    <i>of the
            MLI</i>
                                    ]. The two panel members so appointed shall, within 60 days of the latter
          of their appointments, appoint a third member who shall serve as Chair of the arbitration
          panel. The Chair shall not be a national or resident of either [
                                    <i>Contracting
            State</i>
                                    ].
                                </p>
                                <p>
                                    c) Each member appointed to the arbitration panel must be impartial and
          independent of the competent authorities, tax administrations, and ministries of finance
          of the [
                                    <i>Contracting States</i>
                                    ] and of all persons directly affected by
          the case (as well as their advisors) at the time of accepting an appointment, maintain his
          or her impartiality and independence throughout the proceedings, and avoid any conduct for
          a reasonable period of time thereafter which may damage the appearance of impartiality and
          independence of the arbitrators with respect to the proceedings.
                                </p>
                                <p>
                                    3. In the event that the competent authority of a [
                                    <i>Contracting
            State</i>
                                    ] fails to appoint a member of the arbitration panel in the manner and
          within the time periods specified in paragraph 2 [
                                    <i>of Article 20 of the
            MLI</i>
                                    ] or agreed to by the competent authorities of the
            [
                                    <i>Contracting States</i>
                                    ], a member shall be appointed on behalf of
          that competent authority by the highest ranking official of the Centre for Tax Policy and
          Administration of the Organisation for Economic Co-operation and Development that is not a
          national of either [
                                    <i>Contracting State</i>
                                    ].
                                </p>
                                <p>
                                    4. If the two initial members of the arbitration panel fail to appoint the Chair
          in the manner and within the time periods specified in paragraph 2 [
                                    <i>of Article
            20 of the MLI</i>
                                    ] or agreed to by the competent authorities of the
            [
                                    <i>Contracting States</i>
                                    ], the Chair shall be appointed by the highest
          ranking official of the Centre for Tax Policy and Administration of the Organisation for
          Economic Co-operation and Development that is not a national of either
            [
                                    <i>Contracting State</i>
                                    ].
                                </p>
                            </content>
                        </article>
                        <article>
                            <num>Article 21 (Confidentiality of Arbitration Proceedings) of the MLI</num>
                            <content>
                                <p>
                                    1. Solely for the purposes of the application of the provisions of
            [
                                    <i>Part VI of the MLI</i>
                                    ] and of the provisions of [
                                    <i>the
            Convention</i>
                                    ] and of the domestic laws of the [
                                    <i>Contracting
            States</i>
                                    ] related to the exchange of information, confidentiality, and
          administrative assistance, members of the arbitration panel and a maximum of three staff
          per member (and prospective arbitrators solely to the extent necessary to verify their
          ability to fulfil the requirements of arbitrators) shall be considered to be persons or
          authorities to whom information may be disclosed. Information received by the arbitration
          panel or prospective arbitrators and information that the competent authorities receive
          from the arbitration panel shall be considered information that is exchanged under the
          provisions of [
                                    <i>the Convention</i>
                                    ] related to the exchange of
          information and administrative assistance.
                                </p>
                                <p>
                                    2. The competent authorities of the [
                                    <i>Contracting States</i>
                                    ]
          shall ensure that members of the arbitration panel and their staff agree in writing, prior
          to their acting in an arbitration proceeding, to treat any information relating to the
          arbitration proceeding consistently with the confidentiality and nondisclosure obligations
          described in the provisions of [
                                    <i>the Convention</i>
                                    ] related to exchange
          of information and administrative assistance and under the applicable laws of the
            [
                                    <i>Contracting States</i>
                                    ].
                                </p>
                            </content>
                        </article>
                        <article>
                            <num>Article 22 (Resolution of a Case Prior to the Conclusion of the Arbitration) of the MLI</num>
                            <content>
                                <p>
                                    For the purposes of [
                                    <i>Part VI of the MLI</i>
                                    ] and the provisions
          of [
                                    <i>the Convention</i>
                                    ] that provide for resolution of cases through
          mutual agreement, the mutual agreement procedure, as well as the arbitration proceeding,
          with respect to a case shall terminate if, at any time after a request for arbitration has
          been made and before the arbitration panel has delivered its decision to the competent
          authorities of the [
                                    <i>Contracting States</i>
                                    ]:
                                </p>
                                <p>
                                    a) the competent authorities of the [
                                    <i>Contracting States</i>
                                    ]
          reach a mutual agreement to resolve the case; or
                                </p>
                                <p>b) the person who presented the case withdraws the request for arbitration or the
          request for a mutual agreement procedure.</p>
                            </content>
                        </article>
                        <article>
                            <num>Article 23 (Type of Arbitration Process) of the MLI</num>
                            <content>
                                <p>
                                    2. Except to the extent that the competent authorities of the
            [
                                    <i>Contracting States</i>
                                    ] mutually agree on different rules, the
          following rules shall apply with respect to an arbitration proceeding:
                                </p>
                                <p>
                                    a) After a case is submitted to arbitration, the competent authority of each
            [
                                    <i>Contracting State</i>
                                    ] shall provide any information that may be
          necessary for the arbitration decision to all panel members without undue delay. Unless
          the competent authorities of the [
                                    <i>Contracting States</i>
                                    ] agree
          otherwise, any information that was not available to both competent authorities before the
          request for arbitration was received by both of them shall not be taken into account for
          purposes of the decision.
                                </p>
                                <p>
                                    b) The arbitration panel shall decide the issues submitted to arbitration in
          accordance with the applicable provisions of [
                                    <i>the Convention</i>
                                    ] and,
          subject to these provisions, of those of the domestic laws of the [
                                    <i>Contracting
            States</i>
                                    ]. The panel members shall also consider any other sources which the
          competent authorities of the [
                                    <i>Contracting States</i>
                                    ] may by mutual
          agreement expressly identify.
                                </p>
                                <p>
                                    c) The arbitration decision shall be delivered to the competent authorities of the
            [
                                    <i>Contracting States</i>
                                    ] in writing and shall indicate the sources of
          law relied upon and the reasoning which led to its result. The arbitration decision shall
          be adopted by a simple majority of the panel members. The arbitration decision shall have
          no precedential value.
                                </p>
                                <p>
                                    5. Prior to the beginning of arbitration proceedings, the competent authorities of
          the [
                                    <i>Contracting States</i>
                                    ] shall ensure that each person that
          presented the case and their advisors agree in writing not to disclose to any other person
          any information received during the course of the arbitration proceedings from either
          competent authority or the arbitration panel. The mutual agreement procedure under
            [
                                    <i>the Convention</i>
                                    ], as well as the arbitration proceeding under
            [
                                    <i>Part VI of the MLI</i>
                                    ], with respect to the case shall terminate
          if, at any time after a request for arbitration has been made and before the arbitration
          panel has delivered its decision to the competent authorities of the
            [
                                    <i>Contracting States</i>
                                    ], a person that presented the case or one of
          that person’s advisors materially breaches that agreement.
                                </p>
                            </content>
                        </article>
                        <article>
                            <num>Article 24 (Agreement on a Different Resolution) of the MLI</num>
                            <content>
                                <p>
                                    2. Notwithstanding paragraph 4 of Article 19 [
                                    <i>of the MLI</i>
                                    ],
          an arbitration decision pursuant to [
                                    <i>Part VI of the MLI</i>
                                    ] shall not
          be binding on the [
                                    <i>Contracting States</i>
                                    ] and shall not be implemented
          if the competent authorities of the [
                                    <i>Contracting States</i>
                                    ] agree on a
          different resolution of all unresolved issues within three calendar months after the
          arbitration decision has been delivered to them.
                                </p>
                            </content>
                        </article>
                        <article>
                            <num>Article 25 (Costs of Arbitration Proceedings) of the MLI</num>
                            <content>
                                <p>
                                    In an arbitration proceeding under [
                                    <i>Part VI of the MLI</i>
                                    ],
          the fees and expenses of the members of the arbitration panel, as well as any costs
          incurred in connection with the arbitration proceedings by the [
                                    <i>Contracting
            States</i>
                                    ], shall be borne by the [
                                    <i>Contracting States</i>
                                    ]
          in a manner to be settled by mutual agreement between the competent authorities of the
            [
                                    <i>Contracting States</i>
                                    ]. In the absence of such agreement, each
            [
                                    <i>Contracting State</i>
                                    ] shall bear its own expenses and those of its
          appointed panel member. The cost of the chair of the arbitration panel and other expenses
          associated with the conduct of the arbitration proceedings shall be borne by the
            [
                                    <i>Contracting States</i>
                                    ] in equal shares.
                                </p>
                            </content>
                        </article>
                        <article>
                            <num>Article 26 (Compatibility) of the MLI</num>
                            <content>
                                <p>
                                    2. Any unresolved issue arising from a mutual agreement procedure case otherwise
          within the scope of the arbitration process provided for in [
                                    <i>Part VI of the
            MLI</i>
                                    ] shall not be submitted to arbitration if the issue falls within the
          scope of a case with respect to which an arbitration panel or similar body has previously
          been set up in accordance with a bilateral or multilateral convention that provides for
          mandatory binding arbitration of unresolved issues arising from a mutual agreement
          procedure case.
                                </p>
                                <p>
                                    3. [
                                    <i>Nothing</i>
                                    ] in [
                                    <i>Part VI of the MLI</i>
                                    ]
          shall affect the fulfilment of wider obligations with respect to the arbitration of
          unresolved issues arising in the context of a mutual agreement procedure resulting from
          other conventions to which the [
                                    <i>Contracting States</i>
                                    ] are or will
          become parties.
                                </p>
                            </content>
                        </article>
                        <article>
                            <num>Subparagraph a) of paragraph 2 of Article 28 (Cases eligible to arbitration) of the MLI</num>
                            <content>
                                <p>
                                    <i>Pursuant to subparagraph a) of paragraph 2 of Article 28 of the MLI,
            the Republic of Finland formulates the following reservations with respect to the scope
            of cases that shall be eligible for arbitration under the provisions of Part VI of the
            MLI:</i>
                                </p>
                                <p>
                                    1. Finland reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ] cases involving the application of domestic anti-avoidance rules of
          either [
                                    <i>Contracting State</i>
                                    ]. For this purpose, Finland's domestic
          anti-avoidance rules shall include Act on Assessment Procedure (verotusmenettelystä
          annettu laki (1558/1995)) sections 27–30, Act on the Taxation of Business Profits and
          Income from Professional Activities (elinkeinotulon verottamisesta annettu laki
          (360/1968)) section 6 a, subsection 9 and section 52 h and Act on the Taxation of
          Shareholders in Controlled Foreign Companies (ulkomaisten väliyhteisöjen osakkaiden
          verotuksesta annetun laki (1217/1994)). Any subsequent provisions replacing, amending or
          updating these anti-avoidance rules would also be included in this reservation. Finland
          shall notify the Depositary of any such subsequent provisions.
                                </p>
                                <p>
                                    2. Finland reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ] cases involving conduct for which the taxpayer or a person acting
          on the taxpayer’s behalf has been found guilty by a court of tax fraud or other tax
          related criminal offence in either [
                                    <i>Contracting State</i>
                                    ]. For this
          purpose, Finland's domestic rules shall include the Criminal Code (rikoslaki (39/1889))
          chapter 29 sections 1–4. Any subsequent provisions replacing, amending or updating these
          rules would also be included in this reservation. Finland shall notify the Depositary of
          any such subsequent provisions.
                                </p>
                                <p>
                                    3. Finland reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ] cases concerning items of income or capital where there is no
          double taxation. Double taxation means that both [
                                    <i>Contracting
            States</i>
                                    ] have imposed taxes in respect of the same taxable income or capital
          giving rise to either additional tax charge, increase in tax liabilities or cancellation
          or reduction of losses, which could be used to offset taxable profits.
                                </p>
                                <p>
                                    4. Finland reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ]:
                                </p>
                                <p>a) with respect to taxes withheld at source on amounts paid or credited to
          non-residents, cases which concern taxable events giving rise to such taxes that occur
          before the reference date;</p>
                                <p>b) with respect to all other taxes, cases which concern taxes levied with respect
          to taxable periods that begin before the reference date.</p>
                                <p>For the purposes of this reservation, “the reference date” is the latest
          of:</p>
                                <p>
                                    i) the date of entry into effect of [
                                    <i>the MLI</i>
                                    ] in both
            [
                                    <i>Contracting States</i>
                                    ] with respect to such taxes;
                                </p>
                                <p>
                                    ii) the first day of January of the calendar year next following the expiration of
          a period of six calendar months beginning on the date of the communication by the
          Depositary of the latest definitive reservation withdrawal or notification which results
          in the application of [
                                    <i>Part VI of the MLI</i>
                                    ] between both
            [
                                    <i>Contracting States</i>
                                    ]; and
                                </p>
                                <p>
                                    iii) where the case is a type of case that would be potentially eligible for
          arbitration as a result of the withdrawal, subsequent to the entry into effect of
            [
                                    <i>Part VI of the MLI</i>
                                    ] as between both [
                                    <i>Contracting
            States</i>
                                    ], of [
                                    <i>Contracting State´s</i>
                                    ] reservation made
          pursuant to Article 28(2) or Article 19(12) [
                                    <i>of the MLI</i>
                                    ], the first
          day of January of the calendar year next following the expiration of a period of six
          calendar months beginning on the date of the communication of the Depositary of the
          withdrawal of the reservation.
                                </p>
                                <p>
                                    5. Finland reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ] all cases where an application has been filed under the Convention
          on the Elimination of Double Taxation in Connection with the Adjustment of Profits of
          Associated Enterprises (90/436/EEC) - as amended, or under other instruments agreed by the
          member states of the European Union or under domestic rules which implement such
          instruments. 
                                </p>
                                <p>
                                    <i>Pursuant to Article 28(2)(a) of the MLI, Hungary formulates the
            following reservations with respect to the scope of cases that shall be eligible for
            arbitration under the provisions of Part VI of the MLI:</i>
                                </p>
                                <p>
                                    1. Hungary reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ] any case that falls within the scope of application of the
          Convention on the Elimination of Double Taxation in Connection with the Adjustment of
          Profits of Associated Enterprises (90/436/EEC) as amended or any subsequent regulation
          replacing, amending or updating these rules.
                                </p>
                                <p>
                                    2. Hungary reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ] any case that falls within the scope of application of the COUNCIL
          DIRECTIVE (EU) 2017/1852 of 10 October 2017 on tax dispute resolution mechanisms in the
          European Union or any subsequent regulation replacing, amending or updating these
          rules.
                                </p>
                                <p>
                                    3. Hungary reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ] – on a case-by-case basis – any case where penalties were imposed
          in relation to the adjusted income or capital for tax fraud, wilful default and gross
          negligence in accordance with Hungary’s domestic rules included in Section 41/J. paragraph
          (12) of the Act XXXVII of 2013 on Certain Rules of International Administrative
          Cooperation in Relation to Taxes and Other Public Duties. Any subsequent provision
          replacing, amending or updating these rules would also be included in this reservation.
          Hungary shall notify the Depositary of any such subsequent provision.
                                </p>
                                <p>
                                    4. Hungary reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ] any case which the competent authorities of both
            [
                                    <i>Contracting States</i>
                                    ] agree that are not suitable for arbitration.
          Such agreement shall be reached before the date on which arbitration proceedings would
          otherwise have begun and shall be notified to the person who presented the
          case.
                                </p>
                                <p>
                                    5. Hungary reserves the right to exclude from the scope of [
                                    <i>Part VI of
            the MLI</i>
                                    ] any case which relates to questions of dispute relating to income
          or capital earned in a tax year commencing before 1 January 2018.
                                </p>
                            </content>
                        </article>
                    </chapter>
                </embeddedStructure>
            </p>
            <article eId="art_26">
                <num>Article 26</num>
                <heading>Exchange of information</heading>
                <content>
                    <p>1 The competent authorities of the Contracting States shall exchange such information
      as is necessary for carrying out the provisions of this Convention or of the domestic laws of
      the Contracting States concerning taxes covered by this Convention insofar as the taxation
      thereunder is not contrary to the Convention. The exchange of information is not restricted by
      Article 1. Any information received by a Contracting State shall be treated as secret and
      shall be disclosed only to persons or authorities (including courts and administrative bodies)
      involved in the assessment or collection of, the enforcement or prosecution in respect of, or
      the determination of appeals in relation to, the taxes covered by e Convention. Such persons
      or authorities shall use the information only for such purposes. They may disclose the
      information in public court proceedings or in judicial decisions.</p>
                    <p>2. In no case shall the provisions of paragraph 1 be construed so as to impose on a
      Contracting State the obligation:</p>
                    <p>a) to carry out administrative measures at variance with the laws or the
      administrative practice of that or of the other Contracting State;</p>
                    <p>b) to supply information which is not obtainable under the laws or in the normal
      course of the administration of that or of the other Contracting State;</p>
                    <p>c) to supply information which would disclose any trade, business, industrial,
      commercial or professional secret or trade process, or information, the disclosure of which
      would be contrary to public policy (ordre public).</p>
                </content>
            </article>
            <article eId="art_27">
                <num>Article 27</num>
                <heading>Members of diplomatic or consular missions</heading>
                <content>
                    <p>Nothing in this Convention shall affect the fiscal privileges of members of diplomatic
      consular missions under the general rules of international law or under the provisions of
      special agreements.</p>
                </content>
            </article>
            <p>
                <embeddedStructure class="mli-replacement">
                    <p>
                        <authorialNote>
                            <p>
                                The following paragraph 1 of Article 7 of the MLI applies and supersedes the
      provisions of this Convention:
                                <authorialNote marker="4" placement="bottom">
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 7 of the MLI has effect with respect to the application of this Convention by the
          Republic of Finland:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
          levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                    <p>and,</p>
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 7 of the MLI has effect with respect to the application of the Convention by
          Hungary:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by Hungary, for taxes levied with
          respect to taxable periods beginning on or after 1 January 2022.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <article>
                        <num>ARTICLE 7 OF THE MLI – PREVENTION OF TREATY ABUSE (Principal purposes test provision)</num>
                        <content>
                            <p>
                                Notwithstanding any provisions of [
                                <i>the Convention</i>
                                ], a benefit
        under [
                                <i>the Convention</i>
                                ] shall not be granted in respect of an item of
        income or capital if it is reasonable to conclude, having regard to all relevant facts and
        circumstances, that obtaining that benefit was one of the principal purposes of any
        arrangement or transaction that resulted directly or indirectly in that benefit, unless it
        is established that granting that benefit in these circumstances would be in accordance with
        the object and purpose of the relevant provisions of [
                                <i>the
        Convention</i>
                                ].
                            </p>
                        </content>
                    </article>
                </embeddedStructure>
            </p>
            <article eId="art_28">
                <num>Article 28</num>
                <heading>Entry into force</heading>
                <content>
                    <p>1. The Governments of the Contracting States shall notify to each other that the
      constitutional requirements for the entry into force of this Convention have been complied
      with.</p>
                    <p>2. The Convention shall enter into force sixty days after the date of the later of the
      notifications referred to in paragraph 1 and its provisions shall have effect:</p>
                    <p>a) in respect of taxes withheld at source, to amounts of income derived on or after 1
      January in the calendar year next following the year in which the Convention enters into
      force;</p>
                    <p>b) in respect of other taxes on income, and taxes on capital, to such taxes chargeable
      for any taxable year beginning on or after 1 January in the calendar year next following the
      year in which the Convention enters into force.</p>
                </content>
            </article>
            <article eId="art_29">
                <num>Article 29</num>
                <heading>Termination</heading>
                <content>
                    <p>This Convention shall remain in force until terminated by the Government of a
      Contracting State. Either Government may terminate the Convention, through diplomatic
      channels, by giving notice of termination at least six months before the end of any calendar
      year following after the period of five years from the date on which the Convention enters
      into force. In such event, the Convention shall cease to have effect:</p>
                    <p>a) in respect of taxes withheld at source, to amounts of income derived on or after 1
      January in the calendar year next following the year in which the notice is given;</p>
                    <p>b) in respect of other taxes on income, and taxes on capital, to such taxes chargeable
      for any taxable year beginning on or after 1 January in the calendar year next following the
      year in which the notice is given.</p>
                    <p>In witness whereof the undersigned, duly authorised thereto, have signed this
      Convention.</p>
                    <p>Done in duplicate at Budapest this 25th day of October 1978, in the English
      language.</p>
                </content>
            </article>
            <hcontainer name="attachments">
                <hcontainer eId="protocol" name="attachment">
                    <heading>Protocol</heading>
                    <content>
                        <p>At the signing today of the Convention between the Government of Finland and the
      Government of the Hungarian People' s Republic for the avoidance of double taxation with
      respect to taxes on income and on capital the undersigned have agreed upon the following
      provisions which shall form an integral part of the Convention:</p>
                        <tblock>
                            <num>1. Ad Article 2, paragraph 3</num>
                            <p>The existing Hungarian income taxes (a jövedelemadók) covered by sub-paragraph b)
        (i) of paragraph 3 of Article 2 of the Convention are:</p>
                            <p>a) the general income tax (az általános jövedelemadó);</p>
                            <p>b) the income tax of those practising intellectual activity (a szellemi
        tevékenységet folytatók jövedelemadója); and</p>
                            <p>c) the income tax on household and auxiliary farms (a háztáji és kisegitö gazdaságok
        jövedelemadója).</p>
                            <p>The existing Hungarian profit taxes (a nyereségadók) covered by sub-paragraph b) (ii) of paragraph 3 of Article 2 of the Convention are:</p>
                            <p>a) the profit tax (a nyereségadó);</p>
                            <p>b) the profit tax of economic associations with foreign participation (a külföldi
        részvétellel müködö gazdasági társulások nyereségadója);</p>
                            <p>c) the profit tax of state enterprises (az állami vállalatok nyereségadója);
        and</p>
                            <p>d) the taxes of foreigners' commercial and othet business agencies (a külföldiek
        kereskedelmi és egyéb, üzleti jellegü képviseletének adója).</p>
                        </tblock>
                        <tblock>
                            <num>2. Ad Artide 5, paragraph 3</num>
                            <p>Notwithstanding the provisions of paragraph 3 of Article 5 of the Convention, the
        competent authorities of the Contracting States may, by mutual agreement, decide in each
        case that a project on erecting a substantial complete project for production, e.g. a power
        plant or paper mill, shall not constitute a permanent establishment even when it lasts more
        than 12 months. The period of time referred to in the preceding sentence shall in no case,
        however, exceed 24 months.</p>
                        </tblock>
                        <tblock>
                            <num>3. Ad Article 8, paragraph 1</num>
                            <p>Profits from the operation of ships or aircraft in international traffic shall be
        deemed to include, i.a., the sale of passage tickets.</p>
                        </tblock>
                        <tblock>
                            <num>4. Ad Article 10, paragraph 2, sub-paragraph a)</num>
                            <p>Economic associations with foreign participation can be established in the Hungarian
        People's Republic also in the form of unlimited liability partnerships. Where such an
        association is established in that form, the provisions of Article 10 shall be applied
        correspondingly to the dividends paid by the association.</p>
                            <p>In witness whereof the undersigned, duly authorized thereto, have signed this
        Protocol.</p>
                            <p>Done in duplicate at Budapest this 25th day of October 1978, in the English
        language.</p>
                        </tblock>
                    </content>
                </hcontainer>
            </hcontainer>
        </mainBody>
    </doc>
</akomaNtoso>
