Ahead of a landmark Organisation for Economic Co-operation and Development meeting that started the process of implementing a global corporate tax rate, the Irish government has capitulated on its once steadfast determination to maintain its low corporate tax rate.
The Irish government has agreed to increase our very attractive 12.5% corporation tax rate to 15%.
Earlier, the Irish Times reported that French economy minister Bruno Le Maire has said has told reporters that after discussions with Minister for Finance Paschal Donohoe the minimum corporate tax rate of 15% is no longer an issue for the Irish government.
I welcome the evolution of the Irish position, in particular on Pillar 2,” Mr Le Maire told journalists, referring to the part of the draft OECD agreement that sets out a minimum 15 per cent corporation tax rate.
“A compromise can be reached on a rate of 15 per cent,” he added. “It is not the rate that poses the most difficulties today. We see that Ireland is in the process of evolving on this subject, and that a compromise can emerge around 15 per cent as the real effective rate.”
“I repeat, contrary to popular belief, this is no longer the most important sticking point.”
The EU’s Brussels elite and the hegemons of the bloc, particularly France, have long viewed Ireland’s low corpoate tax, which was key to the economic boom the country experienced by attracting foreign direct investment, with ire.
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