Ireland is one of nine countries that failed to sign an agreement at the OECD on Thursday to reform the global corporate tax system. The OECD announced that 130 of the 139 countries involved in the talks had adhered to the broad lines of the agreement, but the Republic is not on the published list of signatories. The finance ministry made no immediate comment.
The agreement between the vast majority of OECD countries follows an agreement reached at the recent meeting of G7 finance ministers on a plan to impose a minimum global tax rate of 15% on corporate profits. large companies, as well as paid out of the profits they make in large markets where they have no physical presence.
Annual loss of income
The Department of Finance has previously estimated that the deal will cost Ireland more than € 2 billion in annual tax revenue. Finance Minister Paschal Donohoe has expressed reservations about the G7 proposals and what they mean for countries’ ability to compete for foreign direct investment. The proposed minimum rate of 15 per cent is seen as a particular problem for Ireland, where the corporate tax rate is 12.5 per cent. The OECD said a number of countries have yet to join the deal, so it may remain open for Ireland to sign at a later stage.