Ireland now participates in global tax reform – economy

It was a decision that was not easy for the government in Dublin: after long hesitation, Ireland is now participating in the planned global tax reform. Irish Finance Minister Paschal Donohoe said Thursday evening that the move was “fair, sensible and pragmatic”. The agreement will give the economy long-term stability and planning security. Ireland will certainly remain an attractive destination for international investment, explained Donohoe – behind his back the Irish flag and that of the European Union have been hoisted.

Dublin only approved the project, coordinated by the organization of industrialized nations OECD, after being able to enforce its own demands. According to reports, it is only talking about a tax rate of “exactly 15 percent” – instead of the previous “at least 15 percent”. This is also a big step for Ireland, after all, it is abandoning the previous corporate tax rate of 12.5% ​​for large multinational corporations. The current tax rate should, however, continue to apply to companies with an annual turnover of less than 750 million euros. In addition, tax breaks should continue to be granted for research and development expenditure.

Irish Finance Minister Donohoe stressed that the European Commission had assured Ireland that the Brussels authority would stick to the 15% global tax rate and not seek an increase for the countries of the ‘EU. Ireland has been very cautious in negotiations at the OECD level to rule out any further tax hikes in the future. European Commissioner for Economic Affairs Paolo Gentiloni described Ireland’s decision on the Twitter short message service as “an important and extremely positive step in Europe’s joint efforts towards a fairer and better global tax system. stable”.

The OECD wants to inform on the state of the deliberations this Friday. So far, more than 130 countries have joined the plan for a global minimum tax. A final decision on this subject must be taken by the end of October among the top 20 industrialized and emerging countries (G20). OECD chief Mathias Cormann said he was optimistic that a deal could be reached this month.

The goal of the global minimum tax is to ensure more justice. Above all, politicians want to prevent multinationals like Google, Amazon and Apple from keeping their tax burden extremely low through smart profit shifting. It should be over soon.

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