15/06/22

INTERNATIONAL TAX: Hungary objects to introduction of global minimum tax in EU.

As published on news.am, Wednesday 15 June, 2022.

Hungary objects to the introduction of a global minimum tax in the European Union, saying it can only support a proposal that does not disadvantage firms operating in Hungary and citing additional risks from the war in Ukraine.

In October, brokered by the Organization for Economic Cooperation and Development (OECD), nearly 140 countries reached a bilateral agreement on a minimum tax rate of 15 percent for multinational corporations, Reuters reported.

The agreement will make it harder for companies like Google, Amazon and Facebook to evade taxes by locking in profits in low-tax jurisdictions.

Individual countries must now work out the details of how the deal will be implemented before the 2023 OECD deadline. France, which has held the EU presidency for six months, has pushed for a quick implementation of the deal in the EU, where tax issues require unanimous approval.

Poland has continued to block the compromise, and now Hungary has also raised reservations.

The government said that the introduction of the OECD proposal to tax large digital companies has been delayed, while companies that create jobs in Hungary would be taxed immediately.