Donohoe reveals Ireland is to make strong case for tax competition
Ireland will be making the case for tax competition and for maintaining a corporate tax rate of 12.5 per cent, Minister for Finance Paschal Donohoe reveals.
Mr Donohoe has stated that the global minimum corporate tax rate of 15 per cent proposed by the G7 group was merely a signpost and it is too early to say whether an agreement can be reached on this or any figure.
With negotiations still proceeding, Donohoe has displayed a sense of confidence towards Ireland’s continuance of being an appealing place to do business.
It was also mentioned that much further work is still required to reach a deal among Organisation for Economic Cooperation and Development countries.
Working to ensure that Ireland maintains a competitive tax policy, Mr Donohoe has said that he will ensure that there is still an attraction to create employment in Ireland.
The EU pandemic funding being given to Ireland should not be contingent on a decision to increase the corporate tax rate and Donohoe has asserted he feels “very confident about our overall competitive offering”.
He also added that “massive companies” have made big investments in Ireland this year and getting people back to work will fall hand in hand with these types of investments.
It is clear that no decisions have been made yet to increase corporate tax rates, including in the United Kingdom and United States. Also, many other countries favour tax sovereignty and are concerned about these higher rates.
Keeping the existing rate is required to maintain and increase employment as well as allowing Ireland to continue to be an economy with a good share of international investment.
Not only this, the Minister for Finance has also said that he is examining the introduction of a vacant site tax, however, this will not be decided upon in time for this year’s Budget.
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