DUBLIN—Ireland will sign up for an overhaul of global corporate tax rules if an updated text of the OECD’s proposals is published shortly, Finance Minister Pascal Donohoe said on Thursday.
Ireland, the low-tax European headquarters for many of the world’s largest multinationals, has so far refused to sign an Organization for Economic Co-operation and Development agreement with more than 130 of the 139 negotiating countries.
The EU member state has focused its criticism on a proposed minimum rate of “at least” 15 percent, saying that the inclusion of the phrase “at least” has given companies decades to make long-term investment decisions. The given certainty will be reduced.
Ireland’s corporate tax rate is only 12.5 percent, which has helped attract Google, Facebook and Apple to the country, and foreign multinationals now directly employ more than one in 10 Irish workers.
“If certainty and stability can be tolerated, I believe we will make the case for Ireland entering the agreement. If not, we will stay where we are,” Donohoe told national broadcaster RTE.
He said the government would clarify its stand on the updated text on or before the OECD meeting on October 8.
The agreement with Ireland, one of the countries most likely to benefit from lower corporate taxes, would be a major boost for the project to implement a minimum global rate.
Ireland and other holdouts, including fellow EU members Estonia and Hungary, cannot block the proposed changes.
Irish ministers have also said they are looking closely at whether a deeply divided US Congress will accept President Joe Biden’s proposed tax hike before seeing if a final settlement is possible.
This News Originally From – The Epoch Times