Tax changes will not impact majority of businesses, says Taoiseach

Micheál Martin indicated the changes will target companies with revenues of over €750 million.
Tax changes will not impact majority of businesses, says Taoiseach

The Taoiseach has moved to reassure businesses that most will not be impacted by a change in corporation tax, ahead of a decision on whether Ireland will sign up to the Organisation for Economic Co-operation and Development (OECD) global tax deal.

Speaking in Dublin earlier, Micheál Martin indicated it is still the Government's intention to only target companies with turnovers of over €750 million, in line with OECD proposals.

According to The Irish Times, the Government would need to negotiate this point with the European Commission, rather than the OECD, and these discussions are said to be ongoing.

The Cabinet is meeting later today to consider an updated draft of the OECD deal and hear Minister for Finance Paschal Donohoe's thoughts on the matter.

Following the meeting, it is expected the Government will announce its decision to join the OECD agreement which will increase corporation tax from 12.5 per cent to 15 per cent.

“The vast majority of SMEs will not be impacted by the measures if the Government takes a particular decision today,” Mr Martin said.

“Most companies that are located in Ireland have said they want certainty and they want continuity – they don’t want, every two years, changes as that affects their planning. And where this levels out, I don’t think will impair our competitiveness,” he added.

Previous estimates said the State could lose more than €2 billion a year in revenue if it signs up to the deal.

Ireland is one of nine countries to have not yet signed up to the deal, and has come under increasing international pressure.

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