Taoiseach confirms 'significant progress' on new corporation tax rate of 15%

Taoiseach Micheál Martin said the Government has won a significant concession by having a reference to the new rate being “at least 15%” removed from the latest draft proposals.

Significant progress has been made on a new global corporation tax deal which would see a 15% minimum rate, Taoiseach Micheál Martin has said.

Mr Martin, in Slovenia at an informal summit of EU leaders, was speaking amid growing expectations that Ireland will formally abandon its 12.5% rate as early as tomorrow.

The Government looks all but set to join the OECD agreement on a minimum corporate tax rate of 15%.

The Government has won a significant concession by having a reference to the new rate being “at least 15%” removed from the latest draft proposals.

Positive

Mr Martin said: “I think it is positive in the sense that we were seeking that change in the removal of ‘at least’, so that represents very significant progress in terms of the evolution of this deal within the OECD. We have been part of the OECD process for quite a considerable length of time.

“Our challenge as we said at the outset was to maintain certainty around tax for investors and for companies that are located here. This text goes a long way towards meeting those objectives that we set ourselves whilst also remaining competitive in terms of what we have to offer.

“My experience of FDI [Foreign Direct Investment] companies to date and those I have met over the last six months is still positive towards Ireland, we are still winning a lot of investment. There is a strong pipeline in relation to investments.” 

What's your view on this issue?

You can tell us here

Responding to the Central Bank’s latest report on the Irish economy, Mr Martin did acknowledge that there are likely to be cost of living issues as well as labour shortages to be confronted.

“Globally because of Covid and supply chain issues, inflation is rising. Now the European Central Bank is saying it will be a short-term situation. We have to manage that over the next 6-12 months in ensuring we don’t add to that inflationary cycle. That will be challenging for us as we move to build schools and houses and get out infrastructure programme underway.”