The United States unilaterally terminated crucial treaty with Hungary
Many Hungarians will find themselves in serious trouble due to a historic decision of the United States.
The US decision will affect individuals and companies since America cancelled the double taxation treaty unilaterally, Világazdaság wrote. The Hungarian economic newspaper said that investments would be delayed because of Washington’s decision in the longer term. Furthermore, it creates uncertainty, according to Károly Radnai, chairman of the taxation committee of the American Chambers of Commerce in Central and Eastern Europe (Amcham).
The treaty will be valid until 31 December 2023. Mr Radnai said that the Hungarian veto against the US global minimum tax was among the reasons for Washington’s decision. Furthermore, the old treaty became outdated. Amcham does not have any information about ongoing official talks concerning the issue. Hungary’s finance ministry did not provide an answer for Világgazdaság concerning the termination of the treaty. Amcham believes that a new treaty is in the interest of both sides.
However, hammering out a new agreement and accepting it would take at least years based on international experience. Therefore, we should prepare for years without a treaty excluding double taxation.
Qatar’s newly appointed PM holds first meeting with Hungarian foreign minister in Doha
Mohammed bin Abdulrahman Al Thani, Qatar’s newly appointed prime minister, held his first meeting after taking his oath of office with Foreign Minister Péter Szijjártó in Doha on Tuesday. Szijjártó said on Facebook that he had set out to the conference centre in Doha “to meet my good friend Foreign Minister Mohammed Al Thani, but by the time I arrived, I was met by Prime Minister Mohammed Al Thani, as his first guest, around five minutes after he took his oath.”
From now on, Qatari-Hungarian cooperation will have a supporter at the highest level, Szijjártó said. “We now have even better prospects for obtaining LNG gas from Qatar,” he said, adding that this would contribute to Hungary’s energy security in the foreseeable future. The minister also congratulated Qatar on its success in hosting the 2022 World Cup.
Read alsoHungary could receive Qatari natural gas in 3 years
Source: MTI, Világgazdaság
This is a big deal, but it’s hard to find specifics about how exactly it will affect people. It seems it will affect US citizens too if they are working in Hungary and paying taxes in Hungary and the US.
Just another attempt by the Biden administration to screw a fellow NATO ally and remove the existing Hungarian government.
A purely political decision, designed to influence the internal politics of a sovereign country. Not the first, not the last time. No sour grapes or anything but America and the West are in the final stages of the civilization arc, I’m sorry to say. We need to pivot toward emerging powers.
@A Horvath – isn’t this a perfect example of a Sovereign Country acting in it’s own National Interest?
To be fair – it WAS one of the old school treaties, which did not contain any so-called “Limitation on Benefits” (LOB) provisions.
The lack of a LOB provision gives rise to potential tax treaty abuse and encourages so-called “treaty-shopping” arrangements. Multinational companies made frequent (ab-)use of this (think Hungarian finance, rig leasing, and other tax efficient structures).
There’s actually a draft successor treaty, which for almost a decade has been held up by a Republican Senator, Rand Paul …
Simple choice – fascism or freedom.
Orban chose.
Hank williams
It’s not a simple choice, it’s a political attitude, against a political enemy that the US (or at least the democratic party) and most of the EU want to overthrow, to set up a puppet government and reign over Hungary as they wish.
Ehhh. US / EU setting up puppet regimes? Is this parroting hardline Iranian clerics or something from some rabbit hole in the WWW? I’d be very interested in factual information on this topic, instead of conspiracy theory whisperings.
Believe the US and EU have a vested interest in promoting democracy, dialogue (important in the current, polarized political spectrum) and, for the EU, upholding the Copenhagen criteria, which are:
1. stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;
2. a functioning market economy and the ability to cope with competitive pressure and market forces within the EU; and
3. the ability to take on the obligations of membership, including the capacity to effectively implement the rules, standards and policies that make up the body of EU law (the ‘ acquis ’), and adherence to the aims of political, economic and monetary union.
Ukraine is pretty conscious of these criteria – and know the EU is not going to compromise, so they’re making some drastic changes to get “in the good books”. Would be of great benefit for us if they manage to make this work!