Gerald Nash
Question:372. Deputy Ged Nash asked the Minister for Finance the estimated yield to the Exchequer from an annual levy on insurance firm profits at a rate of 1%; and if he will make a statement on the matter. [39937/21]
View answerTuesday, 27 July 2021
Questions (372)
Written answers
I am advised by Revenue that the trading profits of companies in Ireland are generally taxed at the standard Corporation Tax rate of 12.5 per cent. Some of the main features of the current Corporation Tax regime are its simplicity and that it applies to a broad base.
Changing this rate (or imposing additional levies on corporate profits) would involve increased complexity and could change the attractiveness of Ireland's corporate tax offering. It is not possible to accurately predict the effect that changes to the rate would have on the behaviour and decisions of large, multinational companies. This uncertainty prevents a reliable estimate being made of any yield that may accrue to the Exchequer.
Notwithstanding the above, I am further advised by Revenue that on a straightforward mathematical basis and assuming no behavioural changes by companies, the potential yield from imposing a 1% levy on the profits of insurance firms, is tentatively estimated to be in the region of €48 million in a year.
Question No. 373 answered with Question No. 343.