Irish Taoiseach Micheál Martin has declined to take a concrete stance on whether the country will maintain its 12.5% corporate tax rate amid growing pressure to join an Organisation for Economic Co-Operation and Development (OECD) plan for a minimum global corporate tax rate of 15%.
Regarding Ireland’s tax intentions for US companies, Martin said he would not promise anything until talks with the OECD were resolved.
Ireland is one of the nine countries holding out on signing up to the deal, which was struck in July this year. The country’s low corporate rate has been a long-term central feature of its tax policy and has been crucial in making Ireland an attractive home to the European headquarters of many multinational companies.
The American Chamber of Commerce in Ireland, which represents US giants like Facebook, Google and Pfizer, has already commented on the matter, telling Irish Finance Minister Paschal Donohoe that it would be unwise for Ireland to stay out of a global tax deal.
But Donohoe is waiting for a decision from US Congress on the agreement before committing to the deal, the Irish Times reports. The minister is also seeking to remove the “minimum” provision on the 15% rate to avoid Brussels pushing for a higher figure.
Following a meeting with EU Economy Commissioner Paolo Gentiloni, Donohoe said it was currently “not appropriate” for Ireland to join the agreement and that despite the ongoing negotiations, this could continue being the case.
(Molly Killeen | EURACTIV.com)