Corporate Tax

Eire needs to realize a corporate tax charge of 12.5% ​​with the OECD deal

Any international corporation tax treaty must take into account Ireland’s longstanding corporate tax rate, the Irish government said.

Ireland will “work” across from“An agreement with the Organization for Economic Co-operation and Development that” matches “the country’s” long-term corporate tax rate of 12.5%, which is fair and within the framework of healthy tax competition, “the government said in a stimulus plan released Tuesday. “An agreement with the OECD will stabilize the international tax framework,” she added.

Ireland has stubbornly defended the taxation of some of the world’s largest companies, even in the face of criticism from major European partners. Tax competition is a legitimate tool for small countries, which may not enjoy the same advantages as large ones, argued Irish Finance Minister Paschal Donohoe in April.

Ireland’s renewed defense of its corporate tax rate is due to meet the Group of Seven this weekend to reach an agreement on a global minimum tax rate. Expectations for an interim deal between the world’s richest economies have risen after the US proposed both a minimum rate and rules to redistribute the tax revenues of the largest multinationals.

The OECD talks on tax reform “need to be seen in the context of the wider challenges we are facing after the pandemic,” said the Irish government.

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