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Govt Takes Action against Tax Evasion by Multinationals

MTI-Hungary Today 2019.02.26.

The government plans to institute new rules with a view to preventing multinational companies from evading Hungarian taxes, a finance ministry official told Tuesday’s edition of Magyar Nemzet.

State secretary for tax affairs Norbert Izer said the new rules would largely follow European Union provisions, but Hungarian tax experts also will be consulted at a meeting in March held as part of the drafting process.

Hungary, he said, was among the best investment destinations, and a large reason why is the 2011 transformation of the tax system which introduced the 9 percent corporate tax, now the lowest in the EU.

Hungary Loses the Least Amount of EU Funds to Offshore Countries

Last year, 98 major investments happened via Hungary’s investment promotion scheme, creating 17,000 jobs, with the total value of investments exceeding 1,380 billion forints, he said. Being investor-friendly, however, does not mean tolerating certain companies withdrawing themselves from their tax obligations, he added.

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