The OECD Inclusive Framework reached agreement on Pillar One and Pillar Two proposals on Thursday, 1 July, but Ireland is one of seven members to not sign the agreement. Ireland supports Pillar One proposals but will not sign up to a global minimum effective tax rate of ‘at least 15%’. Minister Donohoe said: “I have consistently spoken of my desire for a comprehensive, sustainable and equitable agreement on the international tax rules at the OECD that meet the needs of all countries, large and small, developed and developing. I was not in a position to join the consensus on the agreement and specifically a global minimum effective tax rate of ‘at least 15%’ today. I have expressed Ireland’s reservation, but remain committed to the process and aim to find an outcome that Ireland can yet support. Ireland will continue to play our part in reaching a comprehensive and, indeed, historic agreement”.

A press release from the Department of Finance noted that Ireland will constructively engage with OECD Inclusive Framework in discussions and technical work over the coming months as part of the process to reach a comprehensive agreement is in October.

Minister Donohoe was interviewed on Newstalk Breakfast, where he noted that he wanted to continue in the negotiation process, but that the global minimum effective tax rate was “a matter of huge national sensitivity to Ireland”.