Ireland to make strong case for tax competition, says Donohoe
Finance Minister Paschal Donohoe has said that Ireland will be vigourously making the case for tax competition and for maintaining a corporate tax rate of 12.5%.
In negotiations on the issue, Minister Donohoe said he is confident that Ireland will continue to be a really attractive place to do business.
Yesterday, Mr Donohoe said that the global minimum corporate tax rate of 15% proposed by the Group of Seven wealthy nations was just a signpost and it was too early to say whether agreement can be reached on that or any figure.
Paschal Donohoe said much further work was still required to reach a deal among Organisation for Economic Cooperation and Development countries.
Speaking on Morning Ireland today, Mr Donohoe said that he is working to ensure that Ireland continues to maintain a really competitive tax policy and be an attractive place to create employment in.
He said that EU pandemic funding being given to Ireland is not contingent on a decision to increase the corporate tax rate.
He said that he is “very confident about our overall competitive offering but it is really important that small and medium sized economies do have the ability to use a lower rate to offset the advantages of scale, location and industrial heritage”.
Paschal Donohoe said the world of Foreign Direct Investment is changing but will “continue to be an indispensable part of our economic model”.
He added that “massive companies” have made big investments in Ireland this year.
The Minister for Finance also said today that he is examining the introduction of a vacant site tax, but it will not be decided upon in time for this year’s Budget.
The Minister said that recent changes to the Local Property Tax will allow data on the quantity of unused property to be assessed.
He said he will continue to examine tax measures that will provide a more efficient use of land.