Thursday, 30 November 2017

Ceisteanna (10)

Seán Haughey

Ceist:

10. Deputy Seán Haughey asked the Minister for Finance if he will report on the future of Ireland's corporation tax rate; if it has been discussed at recent EU Council meetings. [50539/17]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

Ireland's tax rate has not been discussed at recent ECOFIN meetings, and will not be discussed at upcoming meetings.  Corporation tax rates are a matter of national sovereignty and therefore entirely up to each Member State to decide the appropriate level of its own rate. 

Ireland has a stable and competitive corporation tax system, which is internationally recognised as one of the most transparent in the world. As I confirmed in the recent Budget, the 12.5 per cent corporate tax rate is, and will remain, a core part of our offering.

Ireland’s reputation for stability has been earned over a long period of time, and I intend to plan for the future in that same spirit. We have a tax system with a broad base, which is designed for businesses that want to innovate and create employment. By adopting and sticking to a corporation tax system that is sustainable and which meets the highest international standards, we are in a position to offer certainty. With the current changing environment internationally, certainty has become a valuable commodity.

As a small open economy, connected to Europe, the US and the wider world, we are of course affected by changes in the international environment. I do believe, however, that change also brings opportunities. The right choice for Ireland is to continue our commitment to a competitive, transparent and stable corporation tax system with a 12.5 per cent rate.

In regards to direct taxation discussion at EU level, the matters currently on the ECOFIN Council agenda are the EU list of non-cooperative jurisdictions for tax purposes and the challenges of taxation of profits of the digital economy.  Both of these items will be discussed at the next ECOFIN meeting on 5 October.