Irish Examiner view: No room for complacency with Ireland's corporate tax rate

Ireland has, at 12.5%, one of the lowest corporate tax rates in the world, prompting tech giants to make it their European base

US Treasury Secretary Janet Yellen and Eurogroup President and Finance Minister Paschal Donohoe on Saturday, as finance ministers from across the G7 nations meet at Lancaster House in London ahead of the G7 leaders' summit. Picture: Alberto Pezzali/PA

Despite the pandemic, Ireland has maintained its attraction for foreign direct investment. 

However, that should not give rise to complacency, as pressure mounts internationally against our low corporate tax rate.

Finance ministers from wealthy G7 nations have endorsed a global minimum corporate tax of at least 15%, backing an American plan targeting tech giants and other multinationals accused of not paying enough.

Ireland has, at 12.5%, one of the lowest corporate tax rates in the world, prompting tech giants such as Facebook and Google to make it their European base. 

Ireland attracted 165 foreign direct investment projects over the past year, placing it ninth on the European league table of the most attractive investment destinations, maintaining its position of first place for the greatest number of projects per capita.

We cannot afford to be in any way complacent, however.

If US president Joe Biden has his way, low taxation will in the future be a much less powerful tool to attract investment from abroad.