DUBLIN – Ireland is likely to sign off on a reshuffle of global corporate tax rules if an updated text of the OECD’s proposals is released soon to confirm its concerns, Finance Minister Pascal Donoho said Thursday.
Ireland, the European headquarters of the world’s largest multinational low-tax organization, has so far refused to sign up to an organization in more than 130 agreements on economic co-operation and development in 139 negotiating countries.
EU member states have criticized its proposed minimum rate of “at least” 15%, saying the inclusion of the phrase “at least” would undermine decades-long assurances given to companies to make long-term investment decisions.
Ireland’s corporate tax rate of just 12.5 per cent has helped attract countries such as Google, Facebook and Apple, and foreign multinationals now directly employ more than one in 10 Irish workers.
“If certainty and stability can be borne, I believe we will sue for a deal for Ireland. If not, we will stay where we are,” Donohue told national broadcaster RTE.
The government will clarify its views on the updated text at or before the OECD meeting this October.
The agreement from Ireland, the countries that have benefited the most from lower corporate taxes, would be a big incentive for the project to impose a minimum global rate.
Other holdouts, including Ireland and other EU members Estonia and Hungary, cannot prevent the proposed changes.
The Irish ministers also said they were monitoring whether the deeply divided U.S. Congress would accept President Joe Biden’s proposed tax increase before seeing if a final deal was possible.
This News Originally From – The Epoch Times