U.S. terminates double taxation avoidance agreement with Hungary
The United States has terminated its double taxation avoidance agreement with Hungary signed 43 years ago, Minister of Foreign Affairs and Trade Péter Szijjártó said on Facebook on Saturday.
The reason for the step is clear: Hungary is opposed to the introduction of the global minimum corporate tax rate and the resulting tax increases, Szijjártó said.
The European economy needs to operate in a long-term wartime inflation environment, he said. If the tax burden of producing companies is increased further amid these circumstances, the effect will be "dramatic", he added.
Europe's competitiveness is "in ruins" because of runaway energy prices, and the introduction of a global minimum corporate tax rate would be the "coup de grace", he warned.
He said Hungarians have worked hard to make the country's taxes the lowest in Europe, adding that introducing the global minimum corporate tax rate would "practically double" the tax burden of Hungarian producers, putting "tens of thousands" of local workplaces at risk.
"We will continue professional consultations on tax matters with our Republican friends," he added.
MET Group Records 2nd Most Profitable Year in 2023
Gov't Considering Fuel Price Intervention
Nat'l Economy Minister Presses for Incentives to Boost E-Mob...
Time Out Market to Open in Budapest Next Year
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
