Minister for Finance, Paschal Donohoe TD, provided comments on the communique from the G7 Finance Ministers and the minimum effective tax rate of 15 percent for multi-national enterprises in the Dáil last week.
In his response to Parliamentary questions, the Minister detailed that the communique represented an important signpost towards an agreement. He continued to emphasise the need for fair and healthy tax competition to be accommodated in any agreement on OECD discussions, while also providing for robust boundaries to guard against aggressive tax planning.
The Minister also said, “It is important to recognise that a threshold will apply to the minimum effective tax rate. The threshold proposed for Pillar 2 is €750m annual global turnover. Thus, the vast majority of businesses in Ireland will not be subject to these new rules. It is also relevant that subsidiaries of US multinationals are already subject to a similar regime in the US known as GILTI which is expected to coexist with Pillar 2.”
Further talks on an inclusive international agreement will take place in late June and early July.
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