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13003 Hungary - Agreement Regarding the Status of the American International School of Budapest


   
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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13003

 

 

EDUCATION

 

 

 

Agreement Between the
UNITED STATES OF AMERICA
and HUNGARY

 

Effected by Exchange of Notes
Dated at Budapest November 30, 1998

 

 

 

 

 

 

 

 

 

 

 

 

NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89—497, approved July 8, 1966
(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued
under the authority of the Secretary of State shall be competent
evidence . . . of the treaties, international agreements other than
treaties, and proclamations by the President of such treaties and
international agreements other than treaties, as the case may be,
therein contained, in all the courts of law and equity and of maritime
jurisdiction, and in all the tribunals and public offices of the
United States, and of the several States, without any further proof
or authentication thereof.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HUNGARY

Education


Agreement effected by exchange of notes
Dated at Budapest November 30, 1998;
Entered into force November 30, 1998.

MAGYAR KOZTARSASAG
KULUGYMINISZTERIUMA
5186-32
NOTE VERBALE
The Ministry of Foreign Affairs of the Republic of Hungary presents its compliments to the
Embassy of the United States of America and has the honour to propose that the two
governments conclude an Agreement regarding the status of the American International School
of Budapest.
The terms of the Agreement between the Government of the Republic of Hungary and the
Government of the United States of America regarding the status of the American International
School of Budapest are as follows:
Article 1.
The authority and working method of the American International School of Budapest
(hereinafter: "the School") shall be defined in the deed of foundation of the School which shall
be in accordance with the provisions of the present Agreement. The School shall be comprised
of an elementary school and a high school consisting of fourteen (14) grades. Report cards
issued by the School shall correspond to report cards issued under the school system of the
United States of America.
The Government of the Republic of Hungary and the Government of the United States of
America (hereinafter: "the Parties") hereto affirm that the School is a non-profit organisation
with a legal personality, seated in the territory of the Republic of Hungary.
The Maintainer of the School is the American International School of Budapest Foundation
(hereinafter the Maintainer).
The Parties hereto assert that the operation of the School shall be governed by Hungarian legal
regulations, unless otherwise provided by this Agreement.
Article 2.
The School is an educational institution which shall foster cultural relations between the
Peoples of Hungary and the Peoples of countries represented in the School. The governing body
of the School shall be the School Board which shall be represented by its members.
The Parties understand that subject to space availability, the School may admit students whose
English knowledge is sufficient to follow the course of instruction, provided this does not
prevent the admission of students whose mother tongue or first language is English.
Article 3.
The School shall be entitled to participate in scholarship programs in order to promote the
admission of Hungarian students.
Article 4.
The Parties understand that the faculty and other employees of the School (hereinafter: "the
School personnel") shall be employed by the School through the School Board locally or from
abroad, as it is necessary to meet the requirement in the number of the School personnel, with
their salary and other benefits to be provided from the Budget of the School. Members of the
School personnel who are citizens of a country other than Hungary and are not permanent
residents of Hungary may receive their salaries and other benefits in U.S. dollars, and may be
employed exempt from the Hungarian regulations on the employment of foreign citizens.
The budget for the operation of the School shall be set by the School Board. The Government
of the Republic of Hungary has no obligation to provide equipment or premises to the School.
For the purposes of this Agreement, the School director, teachers of the School and its
administrative and operational personnel shall be considered the members of the School
personnel, provided that they are citizens of a country other than Hungary and are not
permanent residents of Hungary.
Article 5.
The Government of the Republic of Hungary:
1. Shall exempt the Maintainer from the payment of any and all taxes and charges, excepting
excise tax and shall reimburse the indirect taxes paid. The condition of the exemption and
reimbursement is that the aforesaid taxes and charges shall originate in the fulfilment of the
School's educational objective and execution of its program, and the establishment and
organisation of the School.
2
2. Shall exempt the School from fees payable on real estate acquired or used by the School for
educational purposes.
3. Shall exempt from the payment of pension contribution and health insurance contribution the
members of the School personnel - being citizens of a country other than Hungary and not
having permanent residence in Hungary - who reside in Hungary to perform work under this
Agreement and their family members, and shall exempt the School from the payment of social
security and health contributions (this exemption shall not apply to Hungarian citizens and
citizens of a country other than Hungary having permanent residence in Hungary). The
abovementioned persons may benefit from the Hungarian social security system under the
regime of individual contracts.
4. Shall entitle the members of the School personnel and their family members - who are
Hungarian citizens and who are citizens of a country other than Hungary and are not permanent
residents of Hungary - to import and export to and from Hungary goods, except those which are
subject to import restrictions, free of customs duties, tax and fees, except for excise tax.
Articles free of customs duties, tax and fees shall include the following:
(a) Any goods or equipment which are imported by a member of the School personnel for the
purpose of performing educational activities.
(b)Objects for the personal use of the members of the School personnel and their family members,
including one car for each employee, purchased or received from abroad, excepting goods
subject to excise tax, which are brought to Hungary within six (6) months from the date of the
beginning of the employment of the member of the School personnel as certified by the School.
Within three (3) years from the date of importation, goods imported under paragraph (a) and (b)
may not be alienated or transferred for use to persons others than those who enjoy the benefits
of this Agreement unless the applicable customs duty has been paid in full. Members of the
School personnel shall be required to pay costs of storage and transportation, as well as any
other public charges.
5. Shall provide a residence permit without fee to members of the School personnel and their
family members. The residence permit, based upon the instrument certifying the projected
employment period, shall be issued by the competent police Headquarters. The entrance visa
shall be issued promptly by the appropriate Embassy or Consulate of the Republic of Hungary. 3
6. Shall exempt the School from the payment of import customs duty, taxes and charges on school
books, equipment and other educational material, construction materials, furniture, vehicles,
audio-visual devices and sports equipment purchased or donated and to be used by the School.
7. Shall approve that the School acquire non-arable real estate internal zoned for the development
of an educational facility and carry out construction thereon, provided it is related to the
establishment, organisation, educational purposes and activities of the School.
8. Shall pay for Hungarian citizen students the amount of the prevailing standard state public
education subsidy.
Article 6.
Customs exemption of the School and individuals entitled thereto under paragraphs 4 and 6 of
Article 5. shall be attested by the organ, authorized to do so by the Government of the Republic
of Hungary.
The refund of indirect taxes to the Maintainer shall be made upon request, certified by the
aforementioned organ and submitted to the tax authority. The right for the reimbursement is
established by the invoices, the indirect tax content of which reaches or exceeds the limit set
out for the diplomatic corps in Budapest in that respect.
Article 7.
The School shall collect tuition fees the rate of which shall be set by the School Board. For
welfare considerations, the School Board may establish exemption from tuition or decrease the
rate of tuition fee for certain students. The School, through the School Board, shall be entitled
to establish scholarship programs. Tuition fees shall be calculated in United States Dollars,
except for Hungarian citizens and foreigners having a permanent domicile in Hungary, who
shall pay the equivalent tuition fee in Hungarian Forints.
Article 8.
This Agreement is concluded for an indefinite period of time and shall enter into force on the
day of the exchange of Notes between the Parties. The Notes to be exchanged will contain the
text of this Agreement.
Either Party may terminate this Agreement upon two (2) years written notice, through
diplomatic channels. The Provisions of this Agreement shall govern the operation of the School
4
until two (2) years from the end of the academic year following the date of receipt of the
termination notice.
In the event of the termination of this Agreement, following the end of the academic year when
the Agreement terminates, the School may no longer operate under the terms herein.
Since the Government of the Republic of Hungary has already approved the terms of the
above Agreement, the Ministry of Foreign Affairs of the Republic of Hungary has the honour to
suggest that, if the foregoing is acceptable to the Government of the United States of America,
this Note and the Note of the Embassy of the United States of America in reply shall constitute
an Agreement.
The Ministry of Foreign Affairs of the Republic of Hungary takes the opportunity to renew to
the Embassy of the United States of America the assurances of its highest consideration.
Budapest, 30 November, 1998
5
No. 271
The Embassy of the United States of America presents
its compliments to the Ministry of Foreign Affairs of the
Republic of Hungary and has the honor to inform the
Ministry of the receipt of Note Verbale 5186-32 and to
confirm the acceptance of the terms of the Agreement
regarding the status of the American International School
of Budapest. The terms of the Agreement between the
Government of the Republic of Hungary and the Government
of the United States of America regarding the status of
the American International School of Budapest are as
follows:
Article 1.
The authority and working method of the American
International School of Budapest (hereinafter: "the
School") shall be defined in the deed of foundation of the
School which shall be in accordance with the provisions of
the present Agreement. The School shall be comprised of
an elementary school and a high school consisting of
fourteen (14) grades. Report cards issued by the School
shall correspond to report cards issued under the school
system of the United States of America.
The Government of the Republic of Hungary and the
Government of the United States of America (hereinafter:
"the Parties") hereto affirm that the School is a non-
profit organisation with a legal personality, seated in
the territory of the Republic of Hungary.
The Maintainer of the School is the American International
School of Budapest Foundation (hereinafter the
Maintainer).
2
The Parties hereto assert that the operation of the School
shall be governed by Hungarian legal regulations, unless
otherwise provided by this Agreement.
Article 2.
The School is an educational institution which shall
foster cultural relations between the Peoples of Hungary
and the Peoples of countries represented in the School.
The governing body of the School shall be the School Board
which shall be represented by its members.
The Parties understand that subject to space availability,
the School may admit students whose English knowledge is
sufficient to follow the course of instruction, provided
this does not prevent the admission of students whose
mother tongue or first language is English.
Article 3.
The School shall be entitled to participate in scholarship
programs in order to promote the admission of Hungarian
students.
Article 4.
The Parties understand that the faculty and other
employees of the School (hereinafter: "the School
personnel") shall be employed by the School through the
School Board locally or from abroad, as it is necessary to
meet the requirement in the number of the School
personnel, with their salary and other benefits to be
provided from the Budget of the School. Members of the
School personnel who are citizens of a country other than
Hungary and are not permanent residents of Hungary may
receive their salaries and other benefits in U.S. dollars,
and may be employed exempt from the Hungarian regulations
on the employment of foreign citizens.
The budget for the operation of the School shall be set by
the School Board. The Government of the Republic of
Hungary has no obligation to provide equipment or premises
to the School.
For the purposes of this Agreement, the School director,
teachers of the School and its administrative and
3
operational personnel shall be considered the members of
the School personnel, provided that they are citizens of a
country other than Hungary and are not permanent residents
of Hungary.
Article 5.
The Government of the Republic of Hungary:
1. Shall exempt the Maintainer from the payment of any and
all taxes and charges, excepting excise tax and shall
reimburse the indirect taxes paid. The condition of
the exemption and reimbursement is that the aforesaid
taxes and charges shall originate in the fulfilment of
the School's educational objective and execution of its
program, and the establishment and organisation of the
School.
2. Shall exempt the School from fees payable on real
estate acquired or used by the School for educational
purposes.
3. Shall exempt from the payment of pension contribution
and health insurance contribution the members of the
School personnel - being citizens of a country other
than Hungary and not having permanent residence in
Hungary - who reside in Hungary to perform work under
this Agreement and their family members, and shall
exempt the School from the payment of social security
and health contributions (this exemption shall not
apply to Hungarian citizens and citizens of a country
other than Hungary having permanent residence in
Hungary). The abovementioned persons may benefit from
the Hungarian social security system under the regime
of individual contracts.
4. Shall entitle the members of the School personnel and
their family members - who are Hungarian citizens and
who are citizens of a country other than Hungary and
are not permanent residents of Hungary - to import and
export to and from Hungary goods, except those which
are subject to import restrictions, free of customs
duties, tax and fees, except for excise tax.
Articles free of customs duties, tax and fees shall
include the following:
(a)Any goods or equipment which are imported by a staff
member for the purpose of performing educational
activities.
(b)Objects for the personal use of the members of the
School personnel and their family members, including
one car for each employee, purchased or received from
abroad, excepting goods subject to excise tax, which
are brought to Hungary within six (6) months from the
date of the beginning of the employment of the member
of the School personnel as certified by the School.
Within three (3) years from the date of importation,
goods imported under paragraph (a) and (b) may not be
alienated or transferred for use to persons others than
those who enjoy the benefits of this Agreement unless
the applicable customs duty has been paid in full.
Members of the School personnel shall be required to
pay costs of storage and transportation, as well as any
other public charges.
5. Shall provide a residence permit without fee to members
of the School personnel and their family members. The
residence permit, based upon the instrument certifying
the projected employment period, shall be issued by the
competent police Headquarters. The entrance visa shall
be issued promptly by the appropriate Embassy or
Consulate of the Republic of Hungary.
6. Shall exempt the School from the payment of import
customs duty, taxes and charges on school books,
equipment and other educational material, construction
materials, furniture, vehicles, audio-visual devices
and sports equipment purchased or donated and to be
used by the School.
7. Shall approve that the School acquire non-arable real
estate internal zoned for the development of an
educational facility and carry out construction
thereon, provided it is related to the establishment,
organisation, educational purposes and activities of
the School.
8. Shall pay for Hungarian citizen students the amount of
the prevailing standard state public education subsidy.
Article 6.
5
Customs exemption of the School and individuals entitled
thereto under paragraphs 4 and 6 of Article 5. shall be
attested by the organ, authorized to do so by the
Government of the Republic of Hungary.
The refund of indirect taxes to the Maintainer shall be
made upon request, certified by the aforementioned organ
and submitted to the tax authority. The right for the
reimbursement is established by the invoices, the indirect
tax content of which reaches or exceeds the limit set out
for the diplomatic corps in Budapest in that respect.
Article 7.
The School shall collect tuition fees the rate of which
shall be set by the School Board. For welfare
considerations, the School Board may establish exemption
from tuition or decrease the rate of tuition fee for
certain students. The School, through the School Board
shall be entitled to establish scholarship programs.
Tuition fees shall be calculated in United States Dollars,
except for Hungarian citizens and foreigners having a
permanent domicile in Hungary, who shall pay the
equivalent tuition fee in Hungarian Forints.
Article 8.
This Agreement is concluded for an indefinite period of
time and shall enter into force on the day of the exchange
of Notes between the Parties. The Notes to be exchanged
will contain the text of this Agreement.
Either party may terminate this Agreement upon two (2)
years written notice, through diplomatic channels. The
Provisions of this Agreement shall govern the operation of
the School until two (2) years from the end of the
academic year following the date of receipt of the
termination notice.
In the event of the termination of this Agreement,
following the end of the academic year when the Agreement
terminates, the School may no longer operate under the
terms herein.
6
Under the terms and conditions of Note Verbale 5186-
32, that Note and this response hereto constitute the
Agreement regarding the status of the American
International School of Budapest.
The Embassy appreciates the Ministry's separate
advice that under current Hungarian law, there is no
income tax liability for members of the School personnel
who are citizens of a country other than Hungary and are
not permanent residents of Hungary.
The Embassy of the United States of America takes
this opportunity to renew to the Ministry of Foreign
Affairs of the Republic of Hungary the assurances of its
highest consideration.
Embassy of the United States of America,
Budapest, November 30, 1998.



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