And second, the meeting supported the introduction of a minimum effective tax rate of “at least 15 per cent” to apply in each country in which the multinationals operate. The second consideration relates to the proposed global minimum tax rate and the attempt to reduce sharply the ability of countries to attract investment via the use of their corporate tax regimes. Ireland will face a decision on whether to increase the 12.5 per cent rate to the new minimum, if one is agreed. So far Paschal Donohoe has said that he believes any new regime must “accommodate” the 12.5 per cent rate. These are the kind of vital areas which will count in future in attracting investment to Ireland and keeping it here.

Source: The Irish Times June 07, 2021 20:34 UTC