Ireland will promote a global corporate tax agreement that “matches” the current low tax rates and allows “fair and fair tax competition,” the country’s Finance Minister Paschal Donohoe said today Wednesday.
Remarks by Donohoe, who chaired the group of euro zone finance ministers, indicated that Ireland is expected to clash with the US over President Joe Biden’s case. ambitious to set the global minimum corporate tax rate.
Biden’s proposals, which came out earlier this month, commitment to “end the race to the bottom on multinational corporate tax”. That makes the countries have low corporate tax rates, including Ireland, is preparing for a fight.
Ireland charges a rate of 12.5%, one of the lowest in Europe. The Biden administration wants companies to comply with a global minimum of 21%; The European Commission has said it will donate The minimum level has not been determined.
Speaking before a virtual meeting of international officials and experts, Donohoe said there was “clearly a new impetus” in the lengthy discussions convened by the OECD in an attempt to harmonize policies between jurisdictions and the elimination of oddities can be judged by the firms. .
Ireland estimates that around 20% of its annual corporate tax will be lost according to Biden’s proposals, emphasizing that the country has points of interest to multinationals that exceed the odds, Donohoe said. far from the tax rate.
“I believe that an agreement can be reached and I will work constructively to reach such an agreement,” Donohoe said. “But I also believe that the legitimate objective of any agreement is that any agreement can facilitate fair and healthy tax competition, while at the same time satisfying the needs of everyone, not just some of the participants. family ”.
Speaking at a similar event, Pascal Saint-Amans, head of the OECD’s tax administration, stressed the need for “tax peace” that would end a “race to the bottom” on global tax rates.
He praised the US proposals that, he said, provided the “impetus” for global discussions.
Saint-Amans, who is leading the OECD negotiations, expressed confidence that the 139 countries involved would reach an agreement during the next meeting of G20 finance ministers in July. He added that the negotiations were “too big to fail”.
According to Benjamin Angel, the European Commission’s direct tax director, despite Biden’s proposals, the EU Commission plans to promote digital taxation to help fund the continent’s economic recovery. from the pandemic.
The plans for such a tax “have nothing to do with this OECD discussion”, Angel suggested at the virtual meeting.
“It is normal for each country, or a group of countries like the European Union, to decide on their own taxation, and I see no reason why the digital economy is out of its role. me. . . of this tax combination, ”he added.