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Washington to end tax treaty with Hungary

July 12th, 2022

As the US announces the termination of double tax treaty with Hungary, the leading pro-government daily agrees with the government that it is crucial for Hungary to keep corporate taxes low.

The US Treasury Department announced that it will terminate the 1979 US-Hungarian treaty on the avoidance of double taxation, in response to the Hungarian veto of the global minimum corporate tax proposed by the US government (see BudaPost June 21). Foreign Minister Szijjártó said that the Hungarian government is determined to defend the Hungarian national interest and resist any efforts to raise corporate taxes. Finance Minister Mihaly Varga  found it strange that the US wants to end the tax treaty with Hungary, while it maintains it with Russia.

Magyar Nemzet’s Gergely Kiss agrees with the government that by terminating the double tax treaty, the US wants to pressure Hungary to approve the global minimum tax. The pro-government commentator contends that the tax hike implied in the proposed 15 per cent global minimum tax would harm Hungary’s economic interests. Kiss recalls that Hungary has relied on low taxes to boost foreign investment and create jobs. By vetoing EU approval of the minimum corporate tax, the Hungarian government defended the country’s national interest, Kiss concludes.

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