The text of the agreement evoked a corporation tax at the minimum effective rate of 15%. Ireland has a corporate tax rate of 12.5%, one of the lowest in the world.
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“A very important step”. The Irish government agreed to raise its corporate tax rate on Thursday, October 7, so that Dublin would join the global tax reform agreement negotiated under the aegis of the OECD. This decision thus removes one of the last obstacles to the success of the project.
After “detailed discussions, the government approved my recommendation that ireland join the international consensus” on taxation, Finance Minister Paschal Donohoe said at a press conference.
To reach a compromise, the text of the agreement now refers to a corporate tax at the minimum effective rate of 15% and no longer to“at least 15%”, a formulation to which Dublin was opposed because it left the door open to future increases. Ireland has a corporate tax rate of 12.5%, one of the lowest in the world.
The historic agreement announced in July under the patronage of the OECD, and signed by 134 countries, would be binding on multinationals with at least 750 million euros in turnover, including many large technology groups. This reform intends to fight against the tax avoidance of multinationals, largely American, which register in countries with the lowest tax rates such as Ireland.
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