- The European Commission is referring Hungary to the Court of Justice of the European Union for failing to align its retail tax regime with EU rules on freedom of establishment.
- Hungary’s retail tax imposes higher, progressive rates on foreign-controlled retail companies, while domestic retailers using franchise systems pay lower rates.
- The regime restricts foreign companies from restructuring to reduce their tax burden, unlike domestic competitors.
- Despite commitments to phase out the retail surtax, Hungary has prolonged and increased the tax, disproportionately affecting foreign-owned companies and the Single Market.
Source: ec.europa.eu
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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