Hungary remains opposed to a global minimum corporate tax rate, Prime Minister Viktor Orban said on public radio on Friday, citing concerns about job creation in the central European country, which has attracted investment through its low-tax regime.
The minimum tax is the second pillar of a two-pillar agreement reached last year among nearly 140 countries to rewrite cross-border taxation rules to better account for how big internet companies can book profits in low-tax countries.
Hungary has utilised its 9% corporate tax rate and considerable government subsidies to entice major investments from German automakers and Asian battery manufacturers in order to strengthen its export-driven economy.
‘This is a job-killing tax increase that, if implemented with Hungary’s agreement, would result in the axing of tens of thousands of jobs,’ Orban stated. ‘The tax issue is not worldwide; it is a matter of national jurisdiction.’
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