Orbán cabinet: Global corporate tax rate could spell competitive disadvantage to EU
The introduction of a global minimum corporate tax rate, which the OECD accepted on Friday, could bring competitive disadvantage for the European Union, a government official said on Monday.
Hungary was among nine countries that did not join a statement backing the introduction of a global minimum corporate tax rate at a meeting of members of the Organisation for Economic Co-operation and Development’s Inclusive Framework on July 1.
At the meeting, 130 members of the framework joined the “Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy”, the finance ministry’s tax affairs state secretary told MTI. The first pillar, which Hungary “fully supported”, would re-allocate some taxing rights over multinationals from their home countries to the markets where they have business activities and earn profits, regardless of whether firms have a physical presence there, Norbert Izer said.
The second pillar would introduce a 15 percent minimum corporate profit tax.
Izer said Hungary was on board with the second pillar of the agreement “as long as it exclusively addresses artificial tax avoidance structures”. “In the case of profits generated from real economic activities … taxation is the sovereign right of every country, and no international organisation may intervene,” he said.
Izer said
the nine dissenting countries were “really just the tip of the iceberg”.
“Rather than speaking about the uniform support of 130 countries, it would be more accurate to say that there were that many that supported the proposal or that were not clearly against it,” he added.
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Source: MTI
2 Comments
What gives the bankrupt dying empire called America the right to dictate to Hungary and all the rest of this planets 195 plus nations how their tax rates should be set? America and its few puppet states need to shut their mouth and go quietly away and hurry up and die. Just because America has taken on more than 200 Trillion USD of liabilities and debts they can no longer compete with the rest of the world and they want to take all of the rest of the planets nations and economies down with them. Margaret Thatcher once said ” The problem with Socialism is eventually you run out of other peoples money to spend” The USA and several of its allies including the UK are now at that point.
Global minimum corporate tax rate is a globalists’ control deal. It should allow globalists to control governments by moving production from country to country, the mining of minerals and destruction of the middle class.
It is incredible the the EU and the G7 fell for such ploy. It shows that economists’ jobs should be given to those that are capable of doing the jobs instead of to friends.