Hungary to ratify OECD multilateral tax agreement in autumn

Hungary is expected to ratify in the autumn the OECD’s multilateral tax convention (MLI), which eliminates many international tax loopholes, Norbert Izer, state secretary for taxation affairs of the Finance Ministry, told MTI.

The biggest positive result of the tax convention for Hungary is that the rules preventing tax evasion can be built into a great part of bilateral tax agreements in a short time on a wide scale,

impeding aggressive tax planning strategies, the state secretary said.

OECD estimates that

multinational companies have paid 100-240 billion dollars less tax per year globally with the help of tax planning strategies,

primarily exploiting the differences between international conventions and the tax rules of individual states, Izer said.

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The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“Multilateral Instrument” or “MLI”) has so far been signed by 78 countries across the world, including Hungary.

Source: MTI