European Union member Hungary has announced that it will not accept the global corporate tax base in its current form.
“Setting a minimum value for global corporate income tax undermines economic growth,” he said in a written statement. The planned 15 percent tax rate is too high and should not be applied to the real economy,” said Hungarian Finance Minister Mihaly Varga, adding that Hungary’s proposals in the OECD talks were ignored.
Stating that Hungary is ready for constructive talks, Varga said, “Our goal is to agree on fair arrangements that all countries and economies of all sizes can benefit from at the OECD meeting in October.”
The OECD reported that 130 countries had agreed on the taxation of at least 15 percent in the countries in which multinational companies operate.
The OECD announced that 130 countries, which represent 90 percent of the global Gross Domestic Product (GDP), including the USA, China, Germany, France, England, Japan and Turkey, have agreed on international tax reform.
According to the agreement, multinational companies will be able to pay taxes where they operate and generate profits. At this rate, annual tax revenue of 150 billion dollars will be generated globally.