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Gov’t: Global Minimum Corporate Tax Rate Would Be ‘Violation of Sovereignty’

MTI-Hungary Today 2021.04.26.

An effort backed by United States President Joe Biden to introduce a global minimum corporate tax rate is a “violation of financial sovereignty”, state secretary for tax affairs Norbert Izer said in Monday’s issue of pro-government daily Magyar Nemzet.

“The concept violates states’ financial sovereignty and attempts to reverse the progress of those countries that have made serious efforts to introduce lower taxes,” Izer told the paper.

He said an endeavour to coordinate global rules on the taxation of tech giants had “taken a new direction” as the OECD hashes out a plan for a global minimum corporate tax rate.

Biden’s Ambition of Global Corporate Tax May End 'Tax Haven' in Hungary
Biden’s Ambition of Global Corporate Tax May End 'Tax Haven' in Hungary

The new economic policy would affect Hungary, where the current level of corporate tax is only 9 percent. Continue reading

He noted that Hungary’s 9 percent corporate tax rate is the lowest in the European Union and added that EU organisations – not the OECD – decide what rules apply in the area of the EU.

“Hungary will not consent to any solution that makes life more difficult for local businesses or reduces the financial sovereignty of the Hungarian state,” Izer said.

featured image: Izer in the Parliament; via Tamás Kovács/MTI