Ireland still expects a global deal on a minimum corporate tax rate of 15 percent to be implemented, despite hurdles in its progress by the US Congress.
The OECD tax treaty process “is unfolding exactly as I expected,” Ireland’s Finance Minister Paschal Donohoe said in an interview with Bloomberg Television. “I still expect that later this year and heading into 2023 we will meet the second pillar of this OECD agreement – in terms of an effective minimum tax rate – for that pillar,” he said. Note that there are always moments of reflection in the transition from agreement to implementation.
A sweeping overhaul of corporate taxation was backed by 136 countries in October as governments settled key differences over the level of a global minimum rate and an end to new digital taxes. Ireland was one of the few holdouts before the deal and sought assurances of US support from Treasury Secretary Janet Yellen.
Ireland has long had a corporate tax rate of 12.5 per cent and the sector accounted for a quarter of total tax revenue last year.
“Overall, I still think we’re going to make progress within the European Union, and I think we’ll see progress at this rate around the world later in the year,” he said.
Still: “If we end up in a position where there is no progress on the rate, it poses a challenge for the whole OECD agreement and opens up new risks, new challenges and the risks of unilateral action,” he said. “I think it’s in our interest to avoid that.”
https://www.independent.ie/business/world/finance-minister-paschal-donohoe-says-he-thinks-global-tax-deal-can-still-be-completed-41856237.html Treasury Secretary Paschal Donohoe says he believes the global tax deal can still be finalized