Ireland Wins Concession on Wording of Global Tax Deal
Ireland Wins Concession on Wording of Global Tax Deal
(Bloomberg) -- Ireland has won a concession over the wording of the proposed global tax agreement on a minimum corporate tax rate, according to a person familiar with the matter.
The reference to “at least” 15% as a minimum rate for companies has been removed from the draft OECD agreement, according to the person, who asked not to be identified because the discussions are private and ongoing. Consensus on an agreement by Friday may still be elusive, however, they said.
Dublin has previously expressed concern about the wording as it is worried it could end up significantly higher than the 12.5% rate currently in force in Ireland.
The government will consider the recommendations of Finance Minister Paschal Donohoe at a cabinet meeting Thursday, ahead of the OECD meeting on Friday, climate minister Eamon Ryan said earlier, adding that he was “hopeful and confident” Ireland would be able to sign up to the deal.
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.
The adjustment in language was first reported by Irish state broadcaster RTE.
©2021 Bloomberg L.P.