Obstructing the international Organization for Economic Cooperation and Development (OECD) can have consequences. Recently, Hungary (whose corporate tax rate is 9.9%) blocked the European Union from finalizing an OECD agreement to set a minimum tax of 15% on large multinational corporations. Now, the U.S. Treasury Department is dismantling the United State’s tax treaty with Hungary. It argues that the Eastern European country’s refusal to implement the OECD’s tax could boost its status as a tax treaty-shopping country, thus disadvantaging allies and trading partners. However, some in Congress have objected to Treasury “targeting other countries over their tax laws.”
Our Blog 