Dáil Éireann Debate, Tuesday - 21 May 2013
159. Deputy Micheál Martin asked the Minister for Finance if he is concerned that Cyprus was required to increase its corporation tax rate to 12.5%; if this decision will have implications for Ireland; and if he will make a statement on the matter. [15986/13]
View answerThe issue of Cyprus raising its corporate tax rate from 10% to 12.5% is a matter for the Cypriot Government. The new rate was agreed as part of the funding programme which was negotiated with the troika.
There are no negative implications for Ireland as a result of this decision and it will have no impact on our 12.5% corporate tax rate. On the contrary, this increase in the Cypriot corporate tax rate could be regarded as vindicating the existing Irish rate as it would now appear that the Troika regards this as a minimum corporate tax rate for its purposes. I would like to point out that there is still an EU Member State with a corporate tax rate of 10%.
This Government, with the support of the vast majority of members of the Oireachtas, maintains the long-standing policy in this country of keeping corporate tax rates low in order to stimulate employment and remains fully committed to the 12.5% rate which it regards as an essential element of this country’s economic strategy.
