Companies are at risk of double taxation due to global tax reforms

By: Trademagazin Date: 2024. 01. 26. 10:26

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Worldwide, transfer pricing conditions are becoming increasingly unpredictable due to global tax reforms and inflation, according to EY’s survey of 1,000 large company executives in more than 40 countries, including Hungary. Domestic companies must also take into account the termination of the American-Hungarian tax treaty and the impact of numerous domestic legislative changes.

The vast majority of respondents (84%) fear double taxation as a result of the reforms introduced in international taxation. According to 71 percent of professionals, and higher interest rates, more than half (51%) of the participants in the research will influence the pricing of linked transactions in the long term.

“The reform of the international tax system is taking place before our eyes, which will bring drastic changes in the life of domestic companies as well. In addition to the termination of the American-Hungarian tax treaty and the introduction of the global minimum tax, many new tasks fall on companies, as the corporate tax has changed, among other things, and the accounting rules have also changed.”

– pointed out András Módos, tax partner of EY.