Corporation tax hike to 20% could leave €14bn hole in public finances by 2030 

Parliamentary Budget Office estimate says multinationals would likely seek to register their income in other countries

The PBO said corporation tax rates 'influence the profit allocation and international tax strategies of multinational corporations'.

Increasing corporation tax on the largest multinationals to 20% would result in €14bn less being taken in annually by 2030, as companies will likely seek to register their income in other locations, a new estimate by the Parliamentary Budget Office (PBO) has found.

The current corporation tax rate stands at 12.5%, but this increases to 15% for companies with a turnover of €750m or more. Ireland signed up for the OECD Two Pillar agreement in October 2021, which set the minimum effective corporation tax rate of 15% for larger companies and it came into effect at the end of 2023.