An important result was achieved in the ongoing international negotiations on the global minimum tax: it was achieved that Hungarian interests were asserted, Finance Minister Mihály Varga announced on Friday on his social media page.
He said that the Hungarian position was consistent throughout: they made it clear that they would only accept a global minimum tax that does not mean a tax increase in Hungary, does not threaten the competitive advantage of the Hungarian economy, and protects the jobs of Hungarian people.
More than 100 text amendment proposals were the result of 2.5 years of persistent work. The head of the ministry highlighted the three most important points: according to one, the corporate tax rate will not change, it will remain at 9 percent. Hungary can collect the global tax with a targeted solution.
They also achieved that real economic activity should not be taxed. This means that company assets and company wage payments can be deducted from the tax rate using a special calculation method, so companies that are not fictitious but engage in activities involving actual asset and wage payments can get this discount then use.
The third result of the agreement, according to the minister, is that a special rate will apply to a 10-year transitional period, for ten years the tax rate will be calculated with a reduced tax return and reduced tax offset.
"We have achieved a very serious result, I can safely say that a Hungarian success has been achieved, we did well to represent our interests decisively," said Mihály Varga, adding that the result was that a compromise was reached that they will be able to join with a good heart.
Source: MTI
