Saudi Press

Saudi Arabia and the world
Friday, Mar 06, 2026

Global tax gets boost as holdouts relent

Global tax gets boost as holdouts relent

A global push to enact a minimum international tax on big corporations moved closer to reality on Friday as one of the last holdouts, Hungary, agreed to join the far-reaching reform.

The OECD-brokered deal, which sets a global tax of 15 percent, is aimed at stopping international corporations from slashing tax bills by registering in nations with low rates.

Hungary's announcement came a day after another key opponent, Ireland, whose low tax rate has attracted the likes of Apple and Google, relented and agreed to join the global effort.

With Hungary, 137 of 140 nations taking part in the tax discussion have now signed up. Estonia also joined the reform on Thursday. Kenya, Nigeria and Sri Lanka are the last holdouts.

"A compromise has come about that we are able to join wholeheartedly," Hungarian Finance Minister Mihaly Varga said. "Hungary will be able to collect the global tax using a targeted solution."

Hungary has a nine percent tax rate, even lower than Ireland's 12.5 percent.

The Hungarian government said in a statement that it agreed to join the global tax after securing concessions including a transitional period of 10 years for a special rate to remain in place.

"The Hungarian standpoint has been consistent throughout: we made it clear that we would only adopt a global minimum tax that does not lead to a tax increase in Hungary, does not endanger the competitive advantage of the Hungarian economy, and protects the workplaces of the Hungarian people," Varga said.

The talks received a boost earlier this year when the administration of US President Joe Biden backed a global minimum tax rate of at least 15 percent to put an end to a "race to the bottom" between nations.

The coronavirus pandemic has also added urgency to the reforms as countries need new sources of revenue to pay for huge stimulus programmes that were deployed during last year's global recession.

- $150 billion for governments -


The Paris-based Organisation for Economic Co-operation and Development said in July that 130 countries had agreed to a tax of "at least" 15 percent.

Ireland finally backed down after the phrase "at least" was removed from the reform as it feared that it could have led to future increases of the rate.

Finance minister Paschal Donohoe said Ireland would raise its corporate tax rate from 12.5 to 15 percent for multinationals with more than 750 million euros ($867 million) in annual sales.

Ireland's low levy has attracted an outsized number of pharma and tech firms but also prompted accusations the nation acts as a tax haven.

The OECD says a global minimum corporate tax rate of 15 percent could add $150 billion to government coffers annually.

G20 leaders are expected to sign off on the deal at a summit in Rome in late October, with the OECD hoping the new tax regime could be in place by 2023 after going through legislatures.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
U.S. Justice Department Pursues Criminal Cases Against Cuban Officials in New Legal Push
Abrupt Cancellation of U.S. Army Exercise Sparks Speculation Over Possible Middle East Deployment
Saudi Arabia Led OPEC Output Surge Ahead of Iran Strikes, Survey Finds
Cristiano Ronaldo Travels to Spain for Hamstring Treatment After Injury in Saudi Pro League Match
Saudi Aramco Reroutes Oil to Red Sea as Strait of Hormuz Disruptions Hit Gulf Exports
Saudi Arabia Presses Ahead With Economic Diversification Despite Fiscal and External Deficits
Middle East Conflict Puts Bahrain and Saudi Arabian Formula One Races at Risk
Iran Targets Israeli Diplomatic Site in Bahrain and US Air Base in Qatar as Regional Conflict Expands
Saudi Arabia Intercepts Three Ballistic Missiles Targeting Prince Sultan Air Base
Iran Launches Fresh Missile and Drone Attacks Across Middle East as Regional War Intensifies
Saudi Arabia Opens Direct Communication Channel With Iran in Bid to Prevent Wider Regional War
Saudi Arabia Maintains Strong Fiscal Position Despite Global Uncertainty, Finance Ministry Says
Saudi Arabia Considers Response After Iranian Drone Strike Hits Major Northern Oil Refinery
Saudi Carrier Flynas Plans Limited Flight Resumption to Dubai Amid Regional Tensions
Saudi Arabia and UAE Pledge Close Coordination to Secure Oil Supplies for Japan
Middle East Conflict Casts Doubt Over Bahrain and Saudi Arabian Formula One Races
Iran Rejects Claims of Attacks on Türkiye, Azerbaijan, Saudi Arabia and Oman
Saudi Arabia Condemns Iranian Strikes Targeting Türkiye and Azerbaijan
Saudi Pro League Orders Clubs to Continue Matches Despite Escalating Regional Conflict
U.S. Embassy in Riyadh Issues Emergency Security Alert After Drone Strike and Escalating Regional Threats
Saudi Arabia Scrambles to Redirect Oil Exports as Gulf Storage Nears Capacity
Iran Expresses Gratitude to Saudi Arabia for Closing Airspace During Escalating Conflict
Saudi Arabia Fears Iranian Strikes Could Target Senior Leaders as Regional War Escalates
Iran Says Its Strikes Target Only U.S. Military Assets and Denies Attacking Saudi Arabia
Drone Strike Hits U.S. Embassy in Riyadh as Middle East Conflict Escalates
Tom Brady’s Saudi Flag Football Event May Shift to U.S. as Middle East Conflict Disrupts Plans
Iran War Strikes Saudi Arabia at a Critical Moment for Its Economic Transformation
Saudi Cabinet Declares Kingdom Will Take All Necessary Measures to Defend National Security
United States Urges Citizens to Leave Fourteen Middle Eastern Countries as Iran War Escalates
Saudi Aramco’s Ras Tanura Refinery Targeted Again in Second Drone Attack Within Two Days
Saudi Pro League Orders Clubs to Continue Fixtures Despite Rising Middle East Conflict
Trump Pursues Major Civil Nuclear Agreement With Saudi Arabia Amid Regional Turmoil
Mass Drone Attacks Strike Gulf States as Iran Conflict Spreads Across Region
No Verified Confirmation of Ronaldo Departure Linked to Iran Conflict or AFC Suspension
No Verified Evidence of Israeli Intelligence Arrests in Qatar or Saudi Arabia
Drone Attack Forces Temporary Shutdown of Saudi Arabia’s Largest Oil Refinery
Israel Intensifies Air Campaign in Tehran as Iran Expands Regional Retaliation
Iranian Strikes Escalate Middle East Conflict, Drawing Saudi Arabia Closer to Wider War
No Verified Confirmation of Drone Strike on King Fahd Causeway Amid Regional Tensions
No Verified Evidence Saudi Crown Prince Is Seeking to Weaken Israel Amid Regional Tensions
Reports Emerge of Drone Strike Near US Embassy in Saudi Arabia as Americans Told to Shelter
Saudi Arabia Weighs Strategic Options as Tensions With Iran Intensify
Iran Expands Strikes on Saudi and Qatari Infrastructure, Opening a New Front in Gulf Conflict
Western Navies Sound Alarm as Russian Shadow Tankers Transit NATO Waters in Defiance of Sanctions
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Imola Emerges as Standby Venue if Bahrain or Saudi Arabia Grands Prix Are Cancelled
Uncertainty Clouds $24 Billion Gulf Investment Linked to Paramount–WBD Deal
Middle East Strikes Disrupt Qatar LNG, Saudi Refining and Israeli Energy Fields
Gulf States Signal Possible Collective Action Over Iran’s Escalating Strikes
Saudi Arabia Summons Iranian Ambassador After Cross-Border Attacks
×