Dáil Éireann Debate, Tuesday - 27 June 2023
221. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by establishing a new levy of 5% on the profits of all airlines and aircraft leasing companies; and if he will make a statement on the matter. [31007/23]
View answerI am advised by Revenue that the gross additional yield from imposing a 5% levy on the taxable profits of all airlines and aircraft leasing companies is tentatively estimated to be in the region of €44 million, for a full year. These estimates are based on the 2021 Corporation tax returns of these companies, the latest year for which fully analysed data are available.
These estimates do not take account of any potential change in behaviour by the entities concerned in response to the suggested levy.
Currently the trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%. Imposing additional taxes on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing such taxes could lead to theoretical gains, there is a risk of such taxes leading to lower levels of economic activity and to companies passing the additional tax burden onto their investors, suppliers and, ultimately, consumers.
As the Deputy will be aware Ireland signed up to the OECD Two Pillar agreement in October 2021, including the agreement of a global minimum effective rate of 15%, on a jurisdictional basis, for in-scope entities.
In consideration of the need for certainty regarding our corporation tax regime, and acknowledgment of the significant international corporate tax developments underway, I do not believe it is appropriate to introduce additional taxes or levies on companies at this time.
