https://www.msn.com/en-us/news/worl...gary-over-resistance-to-global-tax/ar-AAZoLNy
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The Biden administration on Friday said it will terminate its four-decade-old tax treaty with Hungary over that country's resistance to implementing a global minimum tax, as the United States seeks to create a global tax floor for large multinational corporations.
In a statement on Friday, the Treasury Department said the United States is ending the treaty with Hungary because “the benefits are no longer reciprocal,” citing a loss of tax revenue for the United States and little return for American investment in the country. Hungary, which has one of the lowest corporate tax rates in Europe, is currently blocking the European Union's implementation of the global minimum tax agreement. World leaders have agreed on a 15 percent corporate tax floor, championed as a top priority by Treasury Secretary Janet L. Yellen. Hungary's corporate tax rate is 9 percent. Each country in the European Union has veto power over the bloc's tax agreements, and every other E.U. member country supports the proposal.
GOP officials back Hungary's resistance to global tax deal, bucking Biden “The United States, across administrations, has had long-held concerns with Hungary's tax system and the Hungary treaty,” the Treasury statement said. “We discussed these concerns with Hungary starting last fall, but are taking this step due to a lack of satisfactory action by Hungary to remedy these concerns.”
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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
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The Biden administration on Friday said it will terminate its four-decade-old tax treaty with Hungary over that country's resistance to implementing a global minimum tax, as the United States seeks to create a global tax floor for large multinational corporations.
In a statement on Friday, the Treasury Department said the United States is ending the treaty with Hungary because “the benefits are no longer reciprocal,” citing a loss of tax revenue for the United States and little return for American investment in the country. Hungary, which has one of the lowest corporate tax rates in Europe, is currently blocking the European Union's implementation of the global minimum tax agreement. World leaders have agreed on a 15 percent corporate tax floor, championed as a top priority by Treasury Secretary Janet L. Yellen. Hungary's corporate tax rate is 9 percent. Each country in the European Union has veto power over the bloc's tax agreements, and every other E.U. member country supports the proposal.
GOP officials back Hungary's resistance to global tax deal, bucking Biden “The United States, across administrations, has had long-held concerns with Hungary's tax system and the Hungary treaty,” the Treasury statement said. “We discussed these concerns with Hungary starting last fall, but are taking this step due to a lack of satisfactory action by Hungary to remedy these concerns.”
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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
