Hungarian Parliament adopts resolution opposing EU directive on Pillar Two global minimum tax

Hungary’s Parliament has adopted a resolution opposing the proposed deal on a global minimum tax. This comes days Hungary blocked the directive at the EU Council.

The reasons given for the resolution were inflation and the economic crisis due to the ongoing war between Russia and Ukraine. Hungary said the OECD Pillar Two’s minimum tax, which the EU directive is seeking to implement, will put European countries at a competitive disadvantage.

Hungary’s corporate tax rate stands at 9%, the lowest in Europe. The country remains the only member state opposing the proposed EU directive.