Hungarian Parliament Rejects EU Directive on Global Minimum Tax

Parliament adopted a resolution on Tuesday opposing a planned European Union directive on introducing a global minimum tax on large corporations.

Adopted with 118 votes in favor, 32 against, and six abstentions, the resolution said parliament opposed the directive in view of the inflation and economic crisis caused by the war in Ukraine.

The EU directive will require multinational companies operating in member states where the corporate tax is below 15 percent to pay the difference in their home countries. The aim is to stop companies from relocating to countries offering lower taxes.

The EU directive, proposed by the European Commission last December, aims to introduce a 15% minimum tax rate, effective Jan. 1, 2023, on large multinational corporations with annual revenue of at least €750 million. The reform is estimated to generate over €140 billion in additional income for public coffers every year.

The measure would eliminate tax competition, and would curb the development of countries like Hungary.

The corporate tax rate is currently nine percent in Hungary, the lowest across the European Union.

https://hungarytoday.hu/hungarian-parliament-rejects-eu-directive-on-global-minimum-tax/