Saudi Press

Saudi Arabia and the world
Thursday, Aug 28, 2025

After Budapest, London May also Opt Out of Global Minimum Tax

After Budapest, London May also Opt Out of Global Minimum Tax

Hungary has said “no” to the global minimum tax, which led the US to break its double tax treaty with the country. Now the UK may also back out, but the Americans are less likely to dare take such a hard line.

In Britain, there is a big race for the prime ministership after Boris Johnson resigned in the summer. The two Tory candidates are former Chancellor of the Exchequer Rishi Sunak, and Secretary of State for Foreign, Commonwealth, and Development Affairs Liz Truss.

The politicians are trying to outbid each other in the race, and both are calling for major tax cuts in the country, which run counter to the ideas of big powers like the US, Germany, and France, who are working to introduce a global minimum tax.


Until now, the British have also been in favor of a global minimum tax, and have been one of the main backers in the Organization for Economic Co-operation and Development (OECD) negotiations. However, the candidates in the election promise low taxes, which could easily turn the UK from the frontrunner of the global minimum tax into its opponent, Gergely Czoboly, tax expert at Jalsovszky Law Firm, pointed out to the Világgazdaság economic portal.

However, there are those who strongly oppose the new tax. Hungary, for example, has vetoed the introduction of a global minimum tax in the European Union, which has stalled negotiations. The EU is now reportedly considering how to introduce the tax without the Hungarians, but this could be illegal, according to the tax expert.

The Hungarian veto has not been without retaliation, as the US has terminated the double taxation treaty with Hungary as a result. This makes one wonder whether the Biden administration will apply similar political pressure on the UK.

The answer lies somewhere in the middle, the tax expert points out: on the one hand, the Americans cannot be expected to take such firm diplomatic action against the British. On the other hand,

the Biden administration’s already not so bright domestic political prospects would be significantly damaged if the UK were to withdraw from the OECD deal, and a certain degree of political pressure cannot be ruled out.


According to Gergely Czoboly, the UK already has a more limited influence on the EU’s adoption of the global minimum tax, but the effects of the tax could be felt by UK firms even if the island nation does not introduce it. This also means that developments in the EU could easily force the UK to take action.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
×