Dáil Éireann Debate, Tuesday - 22 November 2016
180. Deputy Michael McGrath asked the Minister for Finance his views on the potential impacts on corporation tax revenue if the United States of America was to reduce its rate of corporation tax to 15%; and if he will make a statement on the matter. [36098/16]
Amharc ar fhreagraMy Department continually monitors potential international tax changes that may have an impact on Ireland. The impact of any US tax reform on Ireland will clearly depend on the exact nature of the reform. Any reforms are likely to be complex and involve broader measures than simply reducing rates.
Regardless of the corporate tax rate applied by the US, Ireland's tax offering and Ireland generally will remain very attractive for US and other multinationals. US companies will always need a base of operations in Europe and Ireland continues to be a very attractive place to invest.
Therefore, in this context, the maintenance of the standard 12.5% rate of corporation tax remains extremely important for Ireland's economy. Ireland, like other smaller member states, is geographically and historically a peripheral country in Europe. A competitive corporate tax rate is a tool to address the economic limitations that come with being a peripheral country, as compared to larger core countries. Ireland's corporation tax rate plays an important role in attracting FDI to Ireland and thereby increasing employment here. This evidence underpins the Government's continued commitment to the 12.5% rate.
