The EU makes another push on corporate tax from 15 percent as Hungary objects

The EU will make another attempt today to agree a minimum corporate tax rate of 15 percent if Hungary lifts its veto.

udapest has stalled a deal while fighting with the bloc to release billions of euros in EU funds.

France’s Finance Minister Bruno Le Maire said he hoped Hungary would lift its veto “in the coming days”.

If Hungary doesn’t do so, Mr Le Maire said, France will be forced to introduce legislation in January to tax multinationals at 15 percent. “It’s a question of fairness and fiscal efficiency,” he said.

France is one of five EU countries in favor of the bloc pushing the tax without Hungary, which is the only EU holdout.

But Treasury Secretary Paschal Donohoe has repeatedly ruled that out.

Some of Hungary’s EU funds have been frozen pending a series of reforms the country has pledged to assure Brussels of the independence of its judiciary and prevent financial fraud.

At their meeting today, EU finance ministers are expected to approve the funding freeze and examine how progress on the tax can be unlocked.

Nearly 140 countries agreed last year to introduce the 15 percent minimum tax, along with a shift in where the largest multinational companies pay their taxes.

However, there are disagreements within the EU over how the funds should be released to Hungary, with the Netherlands intending to abstain on the vote, while Spain insisted the funds should not be disbursed until Hungary has all its reforms completed.

“I hope that we will be able to address the various pending issues in view of the full enforcement and endorsement of EU rule of law principles across the EU and in the case of Hungary in particular,” said Spain’s Deputy Prime Minister and Economy Minister Nadia Calviño.

Hungary is trying to release €7.5 billion in frozen regional aid and €5.8 billion in pandemic grants.

Last week, the European Commission approved Hungary’s plans for the pandemic money but said there was “an ongoing risk to the EU budget” from the country.

Meanwhile, EU countries are wrestling with how to counteract US buy-American clauses in their legislation.

https://www.independent.ie/business/world/eu-makes-another-push-on-15pc-corporate-tax-as-hungary-objects-42197366.html The EU makes another push on corporate tax from 15 percent as Hungary objects

Fry Electronics Team

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