“We were able to implement the Hungarian interests (…) A compromise was reached that we can join in good conscience,” Varga said in a recording posted on his personal Facebook page.

The Minister stressed that the corporate income tax in Hungary will not change, and will remain at the level of 9%, which is – as he indicated – the lowest rate in the European Union. He said that no real economic activity would be taxed, that is, corporate assets and corporate wages and salaries can be deducted from taxes using a special method of calculation. Finally, a 10-year transition period was agreed.

He noted that Hungary has consistently said that it can only support such a minimum global tax, which will not increase taxes in Hungary, will not threaten the competitive advantages of the Hungarian economy and will enable the protection of Hungarian jobs.

“So a Hungarian victory in Paris, I can safely say that we achieved results,” he concluded.

The Group of Seven major industrialized nations, which includes the world’s most economically developed nations, reached an agreement in June on taxing global companies and introducing a minimum corporate tax rate of 15%. According to the Organization for Economic Co-operation and Development (OECD), a minimum global tax at this level could generate $150 billion annually.

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