Ireland denies reports that it will abolish its low corporate tax system to align with international plans. Global tax rate 15%.
Finance Minister Paschal Donohoe told RTÉ on Thursday that the country’s 12.5% interest rate “has been a key feature of our economic policy for decades” and he is “committed” to maintaining it.
Donohue responded to the report overnight Ireland The 12.5% overall tax rate will be waived to avoid reputation damage and “untouchable status” around the world.
The tax rate has helped Ireland attract multinational companies, including technology companies Google and Facebook, which have European headquarters there, and pharmaceutical companies such as Pfizer.
Donohue did not rule out changing the corporate tax, but said he is negotiating and is pushing Ireland to maintain a low tax rate.
“I think that if there is an agreement that I think is in the interests of our country, I will recommend the agreement to the government. This is very reasonable.
“What I am doing is to provide reasons for our 12.5% interest rate and the right of small and medium-sized economies to have low interest rates as part of their competitiveness,” he said.
Ireland is one of only nine countries out of 139 countries that have rejected the OECD draft international corporate tax reform agreement.
Proponents believe that the corporate tax rate is a sales and marketing tool in the country, because the effective tax rate of multinational companies in the past was determined by tax avoidance schemes, such as “Double Irish”, Is now illegal.
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“We have made huge changes to the corporate tax law-we have phased out the so-called’double Ireland’, and we have brought very significant changes, such as the elimination of stateless companies from our tax law.” Huo said. He added that Ireland has not been praised for changing domestic tax laws to eliminate double Irish.
He stated that he is open to changes, but the current OECD agreement does not have the details that Ireland needs, including “how much tax you can actually collect in your own jurisdiction”.
He added that it “does not have the certainty or precision that this country needs to assess what to do. Therefore, whether we reach a final agreement will depend on the details.”
