Why does the Hungarian tax system unnecessarily let out tens of billions from the country every year?

The article discusses the significant financial losses Hungary incurs due to its tax system, particularly regarding foreign dividend taxation. It highlights that Hungary does not impose withholding tax on dividends paid to foreign owners, unlike most developed countries. This results in substantial revenue loss, estimated at around 13 billion HUF annually from American companies alone. The OECD's model agreements aim to prevent double taxation, but Hungary's lack of a withholding tax on foreign dividends puts it at a disadvantage. The recent termination of the double taxation agreement with the USA further complicates the situation, leading to increased tax obligations for Hungarian entities receiving dividends from the US. The article suggests that implementing a withholding tax could incentivize negotiations for a new tax agreement with the US, potentially benefiting Hungary's economy.