Band news for foreign direct investment in Ireland, members of the European parliament have approved a plan to harmonize corporate tax structure across the bloc.
The Common Consolidated Corporate Tax Base (CCCTB) is designed to create a single EU tax regime and would end Ireland’s almost uniquely low corporate tax, which has been the source of attraction for so much of the foreign investment in the country.
The new measures will also use digital determinations to decide on where companies should pay their taxes.
Ireland has long been pressured and threated with a common corporate tax from EU leaders who view Ireland’s low tax rate as an unfair advantage in attracting investment.
Until now efforts to achieve this have failed as Ireland was supported in its stance by the UK, with Brexit Ireland will lose a valuable ally in the fight to maintain its taxation independence.