Dáil Éireann Debate, Tuesday - 26 July 2022
333. Deputy Michael Lowry asked the Minister for Finance the consultation that he has had with multinational companies to ascertain their concerns in relation to the increase in Ireland’s corporation tax rate; and if he will make a statement on the matter. [39875/22]
View answerIreland, along with almost 140 other countries, made the commitment to the OECD Two Pillar agreement last October, with Pillar Two of the agreement consisting of a minimum effective tax rate of 15% for large corporates.
Given the economic importance of the OECD proposals to Ireland, I held a public consultation on the proposals in mid-2021, with submissions received from a broad range of interested stakeholders. These submissions were considered in detail before Ireland committed to joining the agreement, and are published on my Department's website at www.gov.ie/en/publication/5e8d3-responses-to-oecd-tax-reform-consultation/
I believe that the Two Pillar 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 by placing a floor on tax competition between countries and reducing the incentive to shift profits to low or no tax jurisdictions.
The European Commission published its proposal for the EU Global Minimum Tax Directive on 22 December 2021, which will provide for a co-ordinated implementation of the Pillar Two agreement across EU Member States. Member States engaged in intensive discussions on the proposed Directive in Q1 of this year, and a revised text currently has broad support among most Member States. I expect that the Directive will be unanimously agreed by Member States later this year.
Stakeholder engagement has been central to my Department's approach to tax reform in recent years. The Corporation Tax Roadmap (2018) and subsequent Update (2021) set out a clear timeline for reforms and consultation papers and feedback statements have been published on individual measures. A similar process is under way in respect of the Pillar Two minimum effective tax. A consultation period has just closed (on 22 July) in respect of a consultation paper published on 26 May, and my officials are now beginning to examine the responses received.
It is intended that further consultation will take place with stakeholders in advance of the planned transposition of the measure in Finance Bill 2023.
