Time to build 'resilience' as drive for 21% global tax rate picks up pace

The higher that any global tax rate is struck above 12.5%, the more the competitiveness of Ireland's regime is diluted

A proposal by US president Joe Biden to set a minimum level of 21% for multinationals is the biggest threat to Ireland's 12.5% competitive corporate tax rate since the regime came into place three decades ago. Picture: AP Photo/Evan Vucci

Challenges are looming with the proposed overhaul of the way multinationals are taxed around the world, but Ireland will have some time to prepare for the likely hit to government revenues, Finance Minister Paschal Donohoe has said. 

Mr Donohoe told the Oireachtas budgetary oversight committee there were "clear downside risks" to the exchequer from global tax reform, but there was time "to build up the resilience" before any plans come into place.