Dáil Éireann Debate, Thursday - 15 November 2018
102. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation her views on the latest European Commission proposals for a digital sales tax; and the steps being taken to protect Irish interests. [47653/18]
View answerThe Proposed Digital Services Tax is currently being debated at the Working Party on Tax Questions which is attended by Irish officials. At last week’s ECOFIN meeting, my colleague the Minister for Finance, outlined Ireland’s principled opposition to the introduction of such a tax.
Ireland has a number of concerns with the Commission’s interim tax proposals. These concerns include the short-term nature of the approach, the proposed move away from taxing profits to taxing revenues, the lack of a clear link between the proposed tax and evidence of value creation by digital business, and the potential impact on international trading relations from the adoption of a unilateral EU initiative on digital tax.
Ireland believes that taxation of the digital economy is a global issue which is best addressed at the OECD. In that context we believe that any solution must be long term, sustainable and recognise where value is created in digital business models.
Regardless of the final outcome, it must be borne in mind that Ireland’s corporation tax regime will continue to be competitive while also offering long-term certainty to international business. Crucially, our regime is underpinned by substance. Enterprise 2025 Renewed reaffirms our focus on export-led growth that is underpinned by innovation, talent and investments in place-making.
My officials and I, as well as the IDA, remain in regular contact with companies and with colleagues across Government as this area of international taxation evolves.
I will remain alert and responsive to any changes with regards to the taxation of the digital economy or indeed the overall global tax environment, working with colleagues across Government to ensure that Ireland can react and adapt when required.
