Thursday, 30 November 2017

Questions (10)

Seán Haughey

Question:

10. Deputy Seán Haughey asked the Minister for Finance if he will report on the future of Ireland's corporation tax rate; if it has been discussed at recent EU Council meetings. [50539/17]

View answer

Written answers (Question to Finance)

Ireland's tax rate has not been discussed at recent ECOFIN meetings, and will not be discussed at upcoming meetings.  Corporation tax rates are a matter of national sovereignty and therefore entirely up to each Member State to decide the appropriate level of its own rate. 

Ireland has a stable and competitive corporation tax system, which is internationally recognised as one of the most transparent in the world. As I confirmed in the recent Budget, the 12.5 per cent corporate tax rate is, and will remain, a core part of our offering.

Ireland’s reputation for stability has been earned over a long period of time, and I intend to plan for the future in that same spirit. We have a tax system with a broad base, which is designed for businesses that want to innovate and create employment. By adopting and sticking to a corporation tax system that is sustainable and which meets the highest international standards, we are in a position to offer certainty. With the current changing environment internationally, certainty has become a valuable commodity.

As a small open economy, connected to Europe, the US and the wider world, we are of course affected by changes in the international environment. I do believe, however, that change also brings opportunities. The right choice for Ireland is to continue our commitment to a competitive, transparent and stable corporation tax system with a 12.5 per cent rate.

In regards to direct taxation discussion at EU level, the matters currently on the ECOFIN Council agenda are the EU list of non-cooperative jurisdictions for tax purposes and the challenges of taxation of profits of the digital economy.  Both of these items will be discussed at the next ECOFIN meeting on 5 October.