It contributed to the Hungarian business tax being included in the global minimum tax - this is clear official letter obtained by Világgazdaság
This is noted by the General Secretariat of the Council of the European Union and in accordance with what has been described
the global minimum tax could be applied at home without raising taxes. "This is a Hungarian success," the paper's sources assessed.
Global minimum tax
Previously, 137 countries in the Organization for Economic Co-operation and Development (OECD) agreed to implement the global minimum tax in their own tax rules by the end of 2022.
which would happen with a minimum corporate tax rate of 15 percent
except for large multinational companies. This was voted on at the plenary session of the European Parliament in Brussels this May.
However, approaching the end of the year, it is likely that the states will not be able to meet this ambitious deadline, and according to tax experts, the most likely scenario is that its introduction will be postponed to 2023. There are many reasons for the postponement, including the stalling of the negotiations in the European Union, first due to the Polish and then the Hungarian vetoes, as well as the lack of Senate approval in the United States due to the dissenting vote of a single Democratic senator.
The Hungarian position
The reason for the prospect of a Hungarian veto is the unfair introduction of the global minimum tax
would significantly impair the competitiveness of the economy. Council of the European Union
The corporate tax rate here is 9 percent, and the cabinet does not want to change it. Prime Minister Viktor Orbán called the global minimum tax a "job-killing measure". One of the secrets of the success of the Hungarian economy is precisely the low tax level, so it is worthwhile for foreign companies to come here.
On the other hand, if the application of the global minimum tax does not involve a tax increase, this risk is eliminated, and thus the Hungarian government can already accept its introduction.
This is important because only a unanimous decision can be reached on the issue of the minimum tax, and this cannot be achieved without Hungary.
Source: hirado.hu
Featured image: MTI Photo: Sándor Ujvári
