New 15% tax rate for big multinationals forms cornerstone of Finance Bill

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Companies will be liable to pay a new top-up tax from next year

Legislation to implement a new 15 per cent rate of corporation tax on companies with a turnover of more than €750 million forms the cornerstone of this year’s Finance Bill.

Currently, the effective rate here, or what firms actually pay after deductions and allowances, is about 10-11 per cent so the increase – in many instances – could be between four and five percentage points, which is expected to boost corporate tax receipts.

“Pillar Two will be administered on a self-assessment basis, under the care and management of the Revenue Commissioners,” it said.

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