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EU’s Options for Breaking Minimum Tax Stalemate: Explained

July 1, 2022, 6:00 AM

The European Union is debating how it could implement the currently blocked global minimum tax while side-stepping a problem that often holds-up tax rulemaking—the need for unanimous approval.

The issue has arisen with Hungary being the sole EU country to block its implementation of the tax—known as Pillar Two of the two-pillar tax plan agreed upon by nearly 140 countries last year. Although Hungary previously agreed to an EU law implementing it, the government has changed its mind, arguing that because of Russia’s invasion of Ukraine and higher costs faced by companies, implementation of the minimum tax should be postponed. ...