A decision on the global minimum tax could be taken as early as this summer, the Minister of State for Tax Affairs at the Ministry of Finance said, who said the best answer to the new tax backed by great powers could be given jointly with the Hungarian tax profession; Therefore, it was necessary to convene a tax council, which was attended by representatives of ten tax consulting firms with the largest customer base and experience, seven organizations and the University of Economics.
The Secretary of State, who has now met exceptionally online, stressed that the potential application of a global minimum tax would have a significant impact not only on taxation but also on economic and investment policy around the world.
What was said at the meeting showed that the local business community believed that on June 5, the world’s major powers, the G7, agreed that the tax rate should be 15 percent,
It is as if the color of the house was decided first on the construction site that is still being planned, but even without the structure.
Although a global minimum tax rate already exists, the final rules are far from complete and there are a number of basic elements for its formation. So, for example, it doesn’t really matter
- What taxes can be taken into account in the calculations,
- the tax base to which it will be applied,
- What exceptions or transitional rules will be adopted.
In the case of Hungary, for example, the important question is whether the local business tax can be included in the minimum tax Note Iser Norbert.
According to the participants, a proposal that can flexibly deal with differences in tax systems will be needed. Failing that, the current OECD proposal would not only negatively affect Hungarian companies, but also any company operating in a country affected by global taxes, and according to the Finance Ministry analysis, this is true even for countries with the highest tax rates, at At least one in five companies. In fact, it pays less than 10 percent of its accounting earnings, Norbert Iser noted.
The foreign minister noted that the Organization for Economic Co-operation and Development, ie the Organization for Economic Co-operation and Development, began developing a framework for a lower global tax system in 2019.
The basic idea was originally that Provides for the taxation of digital giants according to uniform rules, So that the tech giants don’t pay a fraction of the tax that a local company pays, say a manufacturing company, that is, the original intent was to tax places where there is value creation, real activity, and consumption.
However, the process took a different direction on the fly. Instead of just taxing giant corporations, he said, advanced economies are now working on setting a minimum tax rate in corporate taxation.