The U.S. Treasury Department recently announced that the U.S.A./Hungary Income Tax Treaty (in force since 1979) is officially terminated, effective January 8, 2023. 

The cessation of the agreement is a direct result of Hungary’s opposition of the European Union’s implementation of a global corporate minimum income tax rate of 15%.  

The U.S. Treasury’s position is that Hungary’s 9% rate – less than half of the U.S. 21% rate – results in a unilateral treaty benefit to Hungary. The U.S.A. is using all avenues to pressure countries to implement a 15% minimum rate, which has already been agreed to by nearly 140 countries. Hungary argues that a rate increase will make it difficult to attract commerce and employment within its borders.

For global mobility professionals, the dissolution may result in future higher tax costs for short-term assignments between the two countries.


And if you need more tax updates, don't forget.....

Join Us for the Premiere of Global Tax Chat


14 February

10:00 AM Boston / 4:00 PM Brussels

We appreciate that this timing does not work for everyone. If you’re interested but unable to join us for the live event, please register to receive access to the recording.

Bring your coffee and your questions for AIRINC's in-house tax experts, Pat Jurgens and Jeremy Piccoli. They'll be in conversation with our own Rob Zeitz this Valentine's Day, discussing all-things-tax, such as:

  • Tax updates and recent tax news
  • Common client questions around hypothetical taxes
  • Fun Valentine's tax facts


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