Ireland drops resistance to corporate tax rate
Ireland has benefited from its low corporation tax
Ireland has signed up for a global treaty that would tax multinational corporations’ profits at a minimum tax rate of 15%.
The Dublin government has been reluctant to surrender its current rate of 12.5% which has been a huge incentive in attracting overseas investors such as Apple and Google who have set up major European bases in the country.
Ireland’s Minister for Finance, Paschal Donohoe, said in a statement Thursday that it was the elimination of two key words that helped change its position.
“We have secured the removal of ‘at least’ in the text,” said Mr Donohoe, referring to the deletion of a stipulation that tax rates should be set at a minimum of “at least 15%.”
Mr Donohoe said the amended agreement “will provide the critical certainty for government and industry and will provide the long-term stability and certainty to business in the context of investment decisions.”