Ireland’s low corporation tax rate might well not be low enough anymore given that the Trump administration aims to drastically cut theirs from 35% right down to just 15%.
The Trump aministration revealed plans that could very well make a major impact on future foreign direct investment into Ireland.
The US Treasury Secretary Steven Mnuchin said that the Administration purposes to cut the US corporate tax rate from 35% drastically back to 15%, just 2.5% more than Ireland’s 12.5% attractive rate.
“Since the 15% has been in the press for the last couple of days, I will confirm that the business tax is going to be 15%,” Mr Mnuchin said at a discussion about the much-anticipated tax plan.
“What this is not going to be is a loophole to let rich people who should be paying higher rates pay 15%,” he continued.
It’s unlikely that such a cut will affect companies already here, but it’s also likely that similar companies won’t bother moving to Ireland as a result.