Ireland's decision to sign up to global corporate tax rate praised as 'momentous'

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Christian Aid questioned whether companies would pay the 15%, and said the minimum rate “is not something to be celebrating”.

Image: Shutterstock/Adam.Bialek Image: Shutterstock/Adam.Bialek THE EUROPEAN UNION’S Economy Commissioner, Deloitte, and Ibec are among those who have praised Ireland for its announcement to sign up to a global deal to increase the State’s corporate tax rate for large companies to 15%.

Ireland didn’t sign up to the agreement in July when 130 other countries did, but due to the removal of “at least” before the rate of 15% in the draft text, Donohoe said it was now “at that point” to back the global proposal. Griffin also said that “a lot of heavy lifting will be required in 2022″ if an implementation date of 2023 is to be achieved, and that engagement with Irish businesses was needed.

“Applying two levels of corporation tax will mean 99% of Irish companies will be unaffected and continue to pay a 12.5% corporation tax rate, with just 1,500 or so corporates in groups with turnover in excess of €750 million subject to a new 15% effective tax rate. “The crucial thing on the OECD’s proposed global minimum corporate tax rate is whether companies are actually going to pay an effective rate of 15% or if they will be successful between now and when this agreement is finally ready to be implemented, in carving out exemptions for themselves to allow them to continue to pay an effective far lower rate.

 

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fiannafailparty FineGael SocDems A start , but let me know when they pay their fair share ..

We are the best capitalists in the world .

i think that's terrible

Joe Stiglitz has an interesting take on this - now that everyone has agreed to 15%, it just becomes the new maximum so, while Ireland loses out a little, corporations gain hugely overall

Wasn’t that long ago they were saying that an increase in corporate tax would cripple Ireland and the large multinationals would be fleeing in their droves

Hmmm where are they picking up the expected 2billion shortfall

'Momentous' 🤣

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