février 1, 2023


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US multinationals are increasing pressure on Ireland to agree to a global tax deal

Big US companies have told Finance Minister Pascal Donohue that Ireland would not be wise to stay out of a global tax deal if the agreement on taxing business profits worldwide is finally settled.

The intervention by the American Chamber of Commerce in Ireland comes as the minister faces international pressure to accept OECD proposals for a global corporate tax rate of « at least » 15 percent.

The plan is highly problematic for Mr Donohue as he has insisted for years to defend the 12.5 per cent Irish rate that has long been a source of contention with Europe.

Today he will meet the European Commission’s economic chief, Paolo Gentiloni, who will say that Ireland will remain competitive on tax even after such a deal is converted into EU law.

We will not put an end to tax competition. We will keep the great differences between the member states of Europe, and on the world stage. But the idea is to have a stable, predictable and fair global framework,” he told The Irish Times before visiting Dublin.

“This competitiveness … is not only related to this difference in minimum taxes, it will remain anyway. It is also related to the achievements of the state in terms of skills, education, university and business environment.”