Ireland Getting Closer to Joining Global Deal on Corporate Taxes
Ireland Getting Closer to Joining Global Deal on Corporate Taxes
(Bloomberg) -- Ireland is increasingly confident it will get the assurances it seeks to sign up to a deal on a global minimum corporate tax rate, according to a person familiar with the matter.
Finance Minister Paschal Donohoe met with European Competition Commissioner Margrethe Vestager in Brussels Monday to discuss tax issues ahead of an OECD meeting on Oct. 8. Dublin has expressed concern about the wording of a proposed minimum tax rate for companies of “at least” 15% and is worried it could end up significantly higher than the 12.5% rate currently in force in Ireland.
There are still details to be worked out and a deal is not certain, said the person, who asked not to be identified because the discussions are private and ongoing. The possibility of two different rates being charged for companies of different sizes is among options being discussed, the person added.
If acceptable assurances are made then Donohoe could take the agreement to the government later this week and Ireland could sign up as soon as Friday, they said.
Ireland has received a revised text of the OECD statement and implementation plan which will be considered ahead of Friday’s meeting, the Finance Ministry said in an emailed response to questions.
“Ireland wants to be part of the deal but at this stage there is a lack of clarity on what is in the deal,” the ministry said. “The process must bring about certainty and there are too many unknowns currently.”
Besides the question of the minimum rate, many other hurdles remain in the effort to get a deal on tax between 140 countries negotiating at the Organisation for Economic Cooperation and Development. Those include how governments will share out rights to tax the multinationals and tech firms in particular.
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