AmCham Pens Letter to Ministers to Urge Govt to Work With US to Save Income Tax Treaty

Following the termination of the US-Hungary double taxation avoidance agreement of 1979, AmCham Hungary sent a letter to Péter Szijjártó, Minister of Foreign Affairs and Trade, Mihály Varga, Minister of Finance and Márton Nagy, Minister of Economic Development on July 18, urging the government to make the necessary steps to uphold the current treaty, or sign a new income tax agreement with the United States.

Termination of the agreement causes uncertainty and tension among companies, harms the competitiveness of our country, and undermines the economic and trade relations between the two countries. AmCham advocates for the creation of a predictable and stable tax environment, transparency, and the protection of investments, which are essential for current and future investors, and we are ready to consult with the government regarding the tax treaty and the global minimum tax. Our common cause is to find a favorable solution for all interested parties for the long-term competitiveness of our country.

The letter was written after an extraordinary Tax Committee meeting on July 15 when members discussed the impact of the cancellation of the US-Hungary income tax treaty, and AmCham's response.