Dáil Éireann Debate, Tuesday - 12 July 2022
333. Deputy Michael Lowry asked the Minister for Finance if he will revise Ireland’s position on the European Union minimum corporation tax rate in light of challenges experienced by the French presidency to agree a consensus position among member states; and if he will make a statement on the matter. [38058/22]
View answerIreland made the commitment to the OECD agreement, which includes the global minimum tax rate, last October, as I believe that this agreement represents a fair compromise reflecting the competing interests of the many countries involved in the negotiations, large and small, developed and developing. It will ultimately bring long-term stability and certainty to the international tax framework, based on a shared understanding of where value is created in digital business models.
This is a global issue, which requires global action to solve in a coordinated way, in order to avoid the proliferation of unilateral tax measures and trade tensions. The EU Directive is the best method for implementation of the Pillar Two minimum effective tax rate within the EU, as it will allow for a consistent transposition, consistent with European law, by all Member States.
While the EU Directive has not yet been agreed, significant progress towards agreement was made during the French presidency of the Council of the European Union, and it is my expectation that unanimous agreement will be reached on the Directive this year.
The decision to join the global agreement was not taken lightly but I firmly believe this agreement brings a unique opportunity to reframe the international taxation architecture which has largely remained in place for almost a century.
Ireland looks forward to final agreement of the Directive soon and we remain actively engaged at the OECD where we are helping shape the detail of how the Pillar Two rules will work in practice, as we believe it is the best avenue to provide certainty for businesses.
