Hungary takes action against tax evasion by multinationals

The government plans to institute new rules with a view to preventing multinational companies from evading Hungarian taxes, a finance ministry official told Tuesday’s edition of Magyar Nemzet.

State secretary for tax affairs Norbert Izer said the new rules would largely follow European Union provisions, but Hungarian tax experts also will be consulted at a meeting in March held as part of the drafting process.

Hungary, he said, was among the best investment destinations, and a large reason why is the 2011 transformation of the tax system which introduced the 9 percent corporate tax, now the lowest in the EU.

Last year, 98 major investments happened via Hungary’s investment promotion scheme, creating 17,000 jobs, with the total value of investments exceeding 1,380 billion forints, he said. Being investor-friendly, however, does not mean tolerating certain companies withdrawing themselves from their tax obligations, he added.

HUNGARY TO BECOME A TAX HAVEN?

With the 7.5 per cent tax that multinational companies have to pay, Hungary is now ahead of other tax havens like Ireland, Cyprus or Malta. It is only in the Benelux states that multinationals get more benefits from the government than in Hungary, read more HERE.