Hungarian Prime Minister Viktor Orban may have used his own peacock dance tactics regarding global minimum taxes, he wrote G7. According to the news portal sources, the prime minister wanted to increase pressure on the European Union by withdrawing from the common European position on 15 per cent of planned global companies. tax Regarding.
The Fidesz government withdrew the consent it had previously promised on this issue, but the declared veto of EU approval caused a big problem not for the EU, but for the United States. Since the introduction of a global minimum tax would certainly be delayed by a year because of this, they responded by providing an example of covering a project important to Americans not only for economic reasons, but also for reasons of prestige.
There was no need to raise taxes
This “statue” became the reason why Americans abolished the double taxation treaty. The importance of the issue is demonstrated by the fact that the United States did not even cancel the double taxation agreement with Russia, despite its aggression against Ukraine.
With the introduction of a new global minimum tax, it was not necessary to increase taxes in Hungary, in fact, the Hungarian government had already agreed to this during international negotiations last year. It was also included in the wording of the agreements that the Hungarian prestige (local business tax) was also acceptable when calculating the minimum tax. Thus, the tax burden for Hungarian companies is already up to 15 percent. In addition, the minimum tax should be applied only to companies with a global turnover of more than 750 million euros – so it will also be possible to impose lower taxes on SMEs.
Scholarship holders can visit
Change will be upsetting for individuals – warns Karoly Radnay, lead partner of Andersen. In the case of a scholar and university student receiving an American scholarship, it may happen that he spends so much time in the United States in one year that he has to pay taxes on his Hungarian income there. Although the taxes paid at home are reported, since the tax rates are much higher there, there is a good chance that you will pay additional taxes.
Therefore, anyone who moves to the United States for more than six months should consult a tax advisor, otherwise there may be unpleasant consequences if the agreement is not replaced in a timely manner.
