The Irish Tax Institute welcomes the agreement on the OECD tax reform proposals announced by the Government this evening.
“The change in language around the global minimum rate secured by the Government as well as the commitment from the EU that the Commission will hold to that rate, brings much needed certainty and stability to the international tax system. This is good news for business and good news for governments as the world recovers from the pandemic,” said Institute President, Karen Frawley.
She also welcomed the assurance from the EU that the new rate will apply only to companies with global revenues in excess of €750m. “This means that our SMEs can continue to benefit from our 12.5% rate without any damage to their competitiveness.”
The Institute said the decision to consult stakeholders in Ireland was helpful to the process and it welcomes the commitment to continue that consultation during the implementation period.
We also believe that the changes to the draft agreement achieved by the Government vindicate its decision to withhold agreement in July despite intense international pressure.
“As a highly open and globalised economy, with few natural resources, foreign direct investment will continue to be a critical part of our industrial policy and the Government has now secured a solid agreement that will allow us to compete with larger economies for our share of global investment,” concluded Ms Frawley.
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