Hungary remains opposed to a global minimum corporate tax rate, the country’s Prime Minister Viktor Orban said in an interview on Friday, citing concern over jobs in the central European country, which has used its low taxes to attract investment. The minimum tax is the second of a two-pillar deal reached last year among nearly 140 countries to rewrite the rules of cross-border taxation to take better account of how big internet companies can book profits in low-tax countries. A global drive for a minimum corporate tax rate is facing resistance in Hungary and the U.S. Congress https://t.co/upUicKlCRJ — The Wall Street Journal (@WSJ) June 26, 2022The Hungarian loopholeHungary has used its 9 percent corporate tax rate and generous government subsidies to attract major investments by German carmakers and Asian battery manufacturers to bolster its export-driven economy. “This is a job-killing tax hike, which, if implemented with Hungary's approval, would wipe out tens of thousands of jobs,” Orban said. “The tax issue is not a global one, it falls under national jurisdiction,” he added.

Source: Wall Street Journal December 02, 2022 14:51 UTC