Hungary refuses to give up its financial sovereignty by introducing a global minimum corporate tax rate, finance ministry state secretary András Tállai told publisher Mediaworks, arguing that such a tax would hurt businesses, consumers and the economy as a whole.
In the article published in the Saturday edition of the daily Magyar Nemzet, Tállai said the introduction of the tax rate proposed by the OECD would eliminate global tax competition, and noted that the tax rate was also
supported by US President Joe Biden.
Hungary’s 9 percent corporate tax rate is the lowest in the European Union, and this has given the country a clear advantage in the race for international investments, Tállai said. “We will not agree to giving that up,” he added.
Tállai noted that the government had introduced a new tax policy in 2010,
levying temporary special taxes on banks, telecommunications companies, energy companies and retail chains.
This generated some 500 billion forints (EUR 1.4bn) in tax revenue for the state budget over a three-year period, he added. “But these rules were drafted in a way that ensured that they would not threaten the operations or profits of these corporations,” he said.
These taxes were later challenged in the Court of Justice of the European Union, which ultimately ruled in Hungary’s favour, Tallai noted.
The government refuses to impose taxes that will hurt domestic companies and the economy at Brussels’s request,
and won’t do so at the request of Washington either, he said.
Source: MTI
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4 Comments
Just a quick question: if the 9% Corporate Tax rate is so advantageous then why do so many companies use Luxembourg, the Netherlands (Amsterdam based) or the Republic of Ireland which also have low tax rates, but higher than Hungary’s? By the logic put forward, they would have all flocked here, but they have not.
Query ..just shut the f.. up.. you do not deserve a answer because your question is stupid and ofcourse out of reality .. GO ORBÁN..you doing a great job!
Thank you for your polite response to a serious question. Bunko paraszt vagy!
There was a time when both the Democrats and Republicans were patriotic parties and they both loved America. The Democrats have succumbed to America hating communists and Islamists. Senile Biden is not in charge. The communists are in charge in America. The World has never been in greater danger than now. Hungary is right to resist the dictates of senile, pretend-president Biden and his communist masters. To Query: Only a low-life would try to insult someone by calling him “paraszt”. In my opinion, the rapidly shrinking “magyar parasztság” represent the values that Hungary needs to preserve to safeguard her national identity.