Ireland could collect an additional €12.4 billion in corporate tax under the proposed global minimum rate of 15%.
That’s according to figures released today by the European Union Tax Observatory, an independent think tank based in Paris that receives funding from the European Union.
Based on OECD tax figures for 2016 and 2017, the observatory estimates that the rule change would have increased Ireland’s corporate tax by 7.7 billion euros, or 91%, in 2016 and 12.4 billion euros, or 137% in 2017.
Luxembourg would have seen its corporate tax increase by 108% in 2016 and 182% in 2017.
The average increase in the EU would have been 15% in 2016 and 18% in 2017.
The OECD average will be an increase of 7% in 2016 and 12% in 2017.
The Observatory report found that the EU-27 will see combined corporate tax revenue increase by a quarter, or €83 billion.
The United States could benefit 57 billion euros annually.
Developing countries will benefit less with an increase of 6 billion euros for China, 4 billion euros for South Africa and 1.5 billion euros for Brazil.
The report concludes that developing and low-income countries will benefit less since most multinational corporations are based in high-income countries.
If « deductions », which are tax breaks for spending on payroll and investing in factory sites and other assets in countries, were applied, the potential revenue in the EU27 would drop to around €64 billion.
Over ten years, as the « deductions » depreciate, the potential incremental revenue could be reduced by 14%.
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