"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," Foreign Minister Szijjártó claimed in a post on social media.Continue reading
On Wednesday, Zsolt Németh, the head of parliament’s foreign affairs committee, thanked Republican Senator Jim Risch and two other US politicians for criticizing their country over the planned termination of a tax agreement with Hungary.
In a statement, Németh said that the US government’s termination of the agreement made in the 1970s was aimed at exerting “political pressure” on Hungary, and that the move “could certainly be linked” to the Hungarian government’s firm rejection of plans to introduce a global minimum tax. He added that the Hungarian government would not support such plans as advocated by “the OECD, the European Union and US Democrats.”
Hungary strives for “balanced and dynamic bilateral cooperation with the US government and partners in the US Congress in as many areas as possible,” Németh wrote in his letter.
Regarding the U.S. Treasury Department’s decision to withdraw from the U.S.-Hungary tax treaty, Jim Risch and two fellow Republican senators, Mike Crapo and Kevin Brady issued a statement on Monday.
“Treasury’s latest tactic to force implementation of the OECD agreement is to withdraw from a longstanding bilateral tax treaty approved by Congress. This is a transparent attempt to bully Hungary into hasty action on a global minimum tax and interfere in an internal European Union policy-making process. The move stands in stark contrast to the Biden Administration’s rhetoric about improving multilateral tax cooperation. We are very concerned that Treasury’s go-it-alone approach to the global tax negotiations will lead to more uncertainty, more disputes among countries, and fewer jobs and opportunities for Americans,” the Republican senators wrote.
Featured photo by Zoltán Máthé/MTI