U.S. Treasury to end 1979 treaty with global minimum tax holdout Hungary

FILE PHOTO: The United States flag flies atop the U.S. Treasury Department in Washington November 18, 2008. REUTERS/Jim Bourg

The U.S. Treasury on Friday said it was moving to terminate a 1979 tax treaty with Hungary in the wake of Budapest's decision to block the European Union's implementation of a new, 15% global minimum tax.

A Treasury spokesperson said that since Hungary lowered its corporate tax rate to 9% - less than half the 21% U.S. rate - the tax treaty unilaterally benefits Hungary.