Corporate Tax

Donohoe pledges to “vigorously” promote the retention of the Irish corporate tax charge

The Treasury Secretary said he was confident Ireland would maintain a competitive economy and pledged to “work hard” to keep the corporate tax rate at 12.5%.

Aschal Donohoe said Ireland will remain an attractive location for business growth and investment.

Mr Donohoe would not say whether Ireland will change its corporate tax rate after the G7 countries decide to agree on a global corporate tax principle and reform the tax system.

Earlier this week it was announced that the federal states have committed to a corporate tax rate of at least 15%.

“I and Ireland will vigorously advocate legitimate tax competition at a rate of 12.5%,” said Donohoe.

I am very confident that we will continue to maintain a really competitive economy and will be a good place to create jobs in Paschal Donohoe

“This has always been a very competitive area within the European Union.

“However, in relation to the funds that are now being made available to Ireland to help us cope with the aftermath of the pandemic, it is worth noting that the money does not depend on us changing our interest rate.

“But in my time as finance minister, our corporate tax policy did not have much of a focus and I have always advocated it.”

Mr Donohoe said he would wait to see what was ultimately agreed between the countries, adding that there was “an awful lot to do”.

“We have seen many other countries express their views on tax sovereignty and concerns about a higher race,” he added.

Shut down

Japan’s Finance Minister Taro Aso (left) and the President of the Eurogroup, Paschal Donohoe, during their meeting when finance ministers from all G7 countries met ahead of the G7 Heads of State and Government Summit in London (Paschal Donohoe / PA)

PA

Japan’s Finance Minister Taro Aso (left) and the President of the Eurogroup, Paschal Donohoe, during their meeting when finance ministers from all G7 countries met ahead of the G7 Heads of State and Government Summit in London (Paschal Donohoe / PA)

“With the process ahead and negotiations still pending, I am very confident that Ireland will continue to be a really attractive place to either grow and start a business or to invest in it.

“In the work we are going to do, I am very confident that we will continue to maintain a really competitive economy and be a good place to create jobs.

“I would also like to maintain and expand employment. I also want Ireland to continue to be an investing economy in which we have a good share of international investment.

“That was also at the heart of our economy’s response to other challenges.

“In our own economic forecasts, which we made a few weeks ago, it showed that, due to the very good shape of our public finances before this pandemic, we have the opportunity to get our public finances back into a balanced position by bringing people back into Bring work. “

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