Saudi Press

Saudi Arabia and the world
Thursday, Feb 26, 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
Saudi Arabia’s Coffee Renaissance Gains Momentum as Investment and Heritage Drive Industry Growth
Saudi Shipping Leader Bahri Expands Fleet as Tanker Rates Approach $200,000 a Day
Saudi Arabia Advances First National Urban Policy Through High-Level Leadership and Institutional Alliances
Major Life Sciences Summits to Spotlight Saudi Arabia’s Rise as Regional Biotech and Pharma Hub
Saudi Arabia Reframes Red Sea and Horn of Africa Strategy Amid Rising Security and Trade Stakes
Saudi Arabia Recalibrates Its Role in Shifting Regional and Global Power Dynamics
Saudi Retail Signals to Global Brands: Localise or Lose Ground in a Rapidly Evolving Market
Saudi Arabia Looks to Human Capital Investment to Unlock Demographic Dividend
Saudi Arabia and Iran Increase Oil Exports Amid Escalating Middle East Tensions
Saudi Data Protection Authority Intensifies Enforcement Under Personal Data Law
Saudi Arabia Raises Oil Output and Exports Amid Contingency Planning Over Iran Tensions
USS Gerald R Ford Arrives in Souda, Crete
Saudi Sovereign Wealth Fund Unit Expands Push Into Global Private Credit
Saudi Arabia Eases Headquarters Rules to Attract More Foreign Firms
Saipem Secures Major Offshore Pipeline Contract in Saudi Arabia
Saudi Arabia’s Targeted Oil Export Cuts to the US Seen as Strategic Signal Amid Global Supply Glut
Nemetschek Arabia Signs Strategic MoU with Saudi Facility Management Association
Gulf Markets Close Mixed as Saudi Shares Slip on Budget Deficit Concerns
Saudi Arabia Posts Largest Quarterly Budget Deficit in Years Amid Weaker Oil Revenues and Higher Spending
U.S. Lawmaker Urges Safeguards on Saudi Civil Nuclear Deal as Trump Administration Advances Agreement
Saudi Arabia and Gulf Allies Rally Behind Kuwait in Escalating Maritime Border Dispute with Iraq
Universal Aviation Secures License to Operate and Manage New General Aviation Terminal in Dammam
Tucker Carlson’s Saudi Arabia Remarks Spark Debate Over Israel Stance
GCC Secretary-General Holds Talks with EU Ambassador in Riyadh
Gulf States’ AI Investment Drive Seen as Strategic Bet on Technology and U.S. Security Ties
African Union Commission Chair Meets Saudi Vice Foreign Minister to Deepen Strategic Cooperation
President El-Sisi Holds Strategic Talks with Saudi Crown Prince in Riyadh
Lucid Unveils Up to $12,000 Incentive for Air and Gravity Models in Saudi Arabia
Saudi Arabia Enters Global AI Partnership, Expanding Its Role in International Technology Governance
Saudi Arabia’s Landmark U.S. LNG Agreement Signals Major Strategic Shift
Saudi Arabia Accelerates Global Gaming Push with Billion-Dollar Deals and Expanded PIF Mandate
Saudi Arabia Reports $25.28 Billion Budget Deficit in Fourth Quarter of 2025
Alvarez & Marsal Tax Establishes Dedicated Pillar Two and Transfer Pricing Team in Saudi Arabia
United States Approves Over Fifteen Billion Dollars in Major Arms Sales to Israel and Saudi Arabia
Pre-Iftar Walks Gain Momentum as Ramadan Wellness Trend Spreads
Middle East Jackup Rig Fleet Contracts Further After Saudi Drilling Suspensions
Türkiye and Saudi Arabia Prepare to Sign Five Gigawatt Renewable Energy Deal at COP31
King Mohammed VI Congratulates Saudi Leadership on Founding Day, Reaffirming Strategic Ties
US Envoy Huckabee Clarifies Remarks on Israel After Expansionism Controversy
Saudi Arabia Introduces Limited Exceptions to Regional Headquarters Requirement for Foreign Firms
Saudi Arabia Joins Global Partnership on Artificial Intelligence, Elevating Its Role in Shaping AI Governance
Saudi Arabia and Arab States Mobilise Diplomatically After U.S. Envoy’s Israel Remarks
Cristiano Ronaldo Reaffirms His Commitment to Saudi Arabia Amid Transfer Speculation
Proposed US-Saudi Nuclear Deal Raises Questions Over Uranium Enrichment Provisions
Saudi Arabia Sends 81st Aid Flight to Gaza as Humanitarian Air Bridge Continues
Global Games Show Riyadh 2026 Positioned as Catalyst for Saudi Arabia’s Vision 2030
Saudi Arabia Eases Procurement Rules, Allowing Foreign Firms Greater Access to Government Contracts
Türkiye and Saudi Arabia Seal Two Billion Dollar Solar Energy Agreement
Saudi Crown Prince Reportedly Sends Letter to UAE Leader Over Yemen and Sudan Policies
Saudi Arabia Voices Concerns to UAE Over Sudan Conflict and Yemen Strategy
×