A Treasury spokesperson said that since Hungary lowered its corporate tax rate to 9 per cent – less than half the US tax rate of 21 per cent – the tax treaty benefits Hungary unilaterally and no longer the US.
The aforementioned agreement To avoid double taxation and prevent tax evasion In the field of income taxation between the Government of the People’s Republic of Hungary and the Government of the United States of America for 43 years.
The timing of the termination – after the US has been concerned about the treaty for years – suggests the Finance Ministry is trying to pressure Hungarian Prime Minister Viktor Orban to agree to the 15 per cent rate accepted by nearly 140 countries. Global minimum tax Introduction – writes Reuters.
The termination is expected to be completed within six months, after the Ministry of Finance sends an official notification to the Hungarian authorities.
Hungary exacerbated the US government’s long-standing concerns about the 1979 tax treaty by blocking an EU directive on introducing global minimum taxes. hHungary will introduce global minimum taxes, and this treaty will be less biased
Said the official spokesman for the Ministry of Finance.
(Cover image: Joe Biden. Photo: Yuri Gribas/Abaca/Bloomberg/Getty Images)
