Digital Desk Staff
Some progress is being made in talks to reach a global deal for a 15 per cent minimum corporation tax rate, Minister for Finance Paschal Donohoe has said after receiving a fresh draft of the proposals.
As The Irish Times reports, Mr Donohue said: “We are making some progress, but there is a need for further engagement both with the OECD, with the Commission. All of that is under way."
“The Government will form a view on this matter later on in the week, and at that point I’ll be in a position then to confirm the Irish position on this important matter.”
Mr Donohoe was speaking at a gathering of finance ministers in Luxembourg which he chaired as Eurogroup president, which was dominated by concerns about rising gas prices but with talks about the taxation reform on the sidelines.
The Department of Finance earlier on Monday confirmed it had received the revised text on the OECD’s corporate tax plan.
The Government has been seeking a key change in the language in the plan, which had said that a global minimum corporate tax rate of at least 15 per cent” would be introduced. Mr Donohoe had called for the “at least” to be removed to leave clarity on the future rate.
If the Cabinet, which meets on Thursday, is content with the revised text, it is likely to give the green light to Ireland signing up to the OECD plan, which would involve giving up the State’s 12.5 per cent rate.
A new rate would be likely to be introduced in 2023, at the earliest. However, the exact detail of the revised OECD text will be vital.
Earlier on Monday Mr Donohoe discussed the taxation talks with the European Commission’s competition and digital chief Margrethe Vestager in Brussels as momentum builds ahead of a Friday meeting of the 140 countries involved in the talks and at which the OECD hopes to clinch the deal.
One point of discussion with Ms Vestager was whether Ireland can retain its 12.5 per cent tax rate for companies with turnover of less than €750 million – which fall outside the OECD proposal – or whether this would disturb EU fair competition rules.
Government sources had seemed confident that Ireland’s case had been heard in the talks, but it remains to be seen what the detail of the revised OECD wording will be.