Hungary is to undercut Ireland and introduce the EU's lowest corporate tax rate.

The Hungarian Prime Minister Viktor Orban (pictured) announced yesterday they will lower their tax rate for businesses to single digits.

The new 9% flat rate will apply from next year and will cost Hungary more than €470m. The current rate is 10%, with 19% applying to profits above €1.9m.

It will make Hungary's rate the lowest in the EU. It undercuts the 12.5% rate offered by Ireland and Cyprus.

The news comes after a senior economic advisor to Donald Trump said the new administration in the US would also slash its corporate tax rate.

Stephen Moore confirmed the new US administration would cut the US business tax from 35% to 15% to stimulate business investment - and said they learned that lesson from Ireland.