articleimg-1
Feb 26, 2019

Government takes steps to stop multinational companies from evading Hungarian taxes

Hungary is now one of the leading tax havens in the world. With the 7.5 percent tax that multinational companies have to pay, Hungary is now ahead of other tax havens like Ireland, Cyprus or Malta

The Hungarian government is planning measures that will prevent multinational companies from tax avoidance.

According to MTI, the government plans to institute new rules with a view to preventing multinational companies from evading Hungarian taxes.

Norbert Izer, State Secretary for tax affairs, told Magyar Nemzet that the new rules would largely follow European Union provisions, but Hungarian tax experts also will be consulted at a meeting in March held as part of the drafting process.

He said Hungary was among the best investment destinations, and a large reason why is the 2011 transformation of the tax system which introduced the 9 percent corporate tax, now the lowest in the EU.

In 2018, major investments happened via Hungary’s investment promotion scheme, creating 17,000 jobs, with the total value of investments exceeding 1,380 billion HUF. Being investor-friendly, however, does not mean tolerating certain companies withdrawing themselves from their tax obligations, he added.

Hungary is now one of the leading tax havens in the world. With the 7.5 percent tax that multinational companies have to pay, Hungary is now ahead of other tax havens like Ireland, Cyprus or Malta.