Despite Hungary’s veto, the EU will introduce a global minimum tax

dailynewshungary.com ^ | 12/09/2022 | András Balogh ·

[BenLurkin]

US Treasury Secretary Janet Yellen invented the global corporate minimum tax to fill the US coffers. Something similar is needed for the European Union. The Covid pandemic, the energy crisis and Russia’s war in Ukraine have all had a negative impact on finances. The Organisation for Economic Co-operation and Development (OECD) has developed the proposal, which is backed by more than 130 Member States. The support is so high because everyone would like to see multinationals taxed where the profits are made, rather than in tax havens.

The global corporate minimum tax only applies to large global companies. Giant global companies with an annual turnover of more than USD 750 million (EUR 746 million). US Republicans oppose a global corporate minimum tax. It is possible that this is why Hungarian Prime Minister Viktor Orbán decided to veto it.

Brussels now wants to bypass the Hungarian veto. Minister of Foreign Affairs Péter Szijjártó spoke about the global minimum tax in Washington this summer, Index.hu reports. “The introduction of a global corporate minimum tax would be a virtual coup de grace for the European economy in the current situation, and the measure would also put Hungary to an extraordinary test,” the Foreign Minister said.

[oblomov]

So just break companies up into legal entities that each generate less than $750M in revenue per annum.

[fella]

The Brits dodged that bullet by getting out of the EU and now they’re going to “Drill Baby Drill” and sell the Euros gas and oil.

[pepsionice]

Legally, by EU ‘rules’, it’s a ‘all or none’ situation. So once one single EU member country vetoed it...it’s a lost cause legally. EU court will eventually pick this up and dump it back at the EU doorstep.