Estonia, Hungary Wait on Sidelines of Global Minimum Tax Efforts

Estonia is taking a wait-and-see approach to any potential implementation of the global minimum tax rate in Europe, and so is Hungary, representatives of both countries told a tax conference in Tallinn on Thursday.

The combination of high energy prices, soaring inflation, and Russia as an immediate neighbor leaves little room for public debate on how to implement the new tax rules in Estonia, said Helen Pahapill, a tax policy adviser at the Estonian Ministry of Finance.

In addition, there is uncertainty on how Estonia’s tax system—which shifts the payment of corporate income tax from when profits are earned ...