Corporate Tax

Eire says no to international minimal corporate tax proposal

The consultation runs until September 10th.

At the beginning of this month, the OECD Inclusive Framework agreed on the most important aspects of the two-pillar solution for overcoming the tax challenges arising from the digitization of the economy.

The first pillar proposes a reallocation of a tax share to the market jurisdiction, while the second pillar seeks to apply a global effective minimum tax rate.

Ireland is unable to join the second pillar consensus, according to a government press release on July 1st.

“There is still a lot to be done before a comprehensive deal is reached in October. Ireland will participate constructively in this further discussion and technical work in the coming months, ”the communication reads.

Finance Minister Paschal Donohoe said: “Today I was unable to join the consensus on the agreement and, in particular, a global effective minimum tax rate of at least 15 percent. I have expressed Ireland’s reservation but remain committed to the process and seek to achieve an outcome that Ireland can nonetheless support. Ireland will continue to do our part to achieve a comprehensive and indeed historic settlement. “

Ireland Advice on international tax reform

On July 20, 2021, Ireland launched a public consultation on key aspects of the two-pillar solution to address the tax challenges posed by digitization and globalization.

Earlier this month, the OECD Inclusive Framework reached agreement, but not unanimous consensus, on key aspects of tax reform.

Ireland has clearly expressed our broad support for the agreement, but has expressed reservations about the proposed minimum global tax rate of at least 15 percent. The consultation will identify the challenges and opportunities of the proposals in relation to Irish corporate tax law and general industrial policy.

Finance Minister Paschal Donohoe said: “I believe it is in the interests of everyone involved to reach a fair, ambitious and sustainable agreement on the international tax architecture at the OECD. In the wake of the Covid-19 pandemic, it is vital that the international tax system provides the security and stability necessary to support growth and investment, and Ireland is committed to doing our part to achieve the comprehensive deal. “

“I am committed to ensuring that Ireland’s tax policies continue to support economic growth and prosperity, and in that regard I would welcome the views of the general public and key stakeholders on key aspects of the OECD proposals.”

The consultation runs until September 10th.

The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and regularly writes news on transfer pricing and international tax law. Alex can be reached at editor@transferpricingnews.com

Related Articles