The Minister for Finance, Paschal Donohoe TD, spoke on RTÉ’s Morning Ireland on Thursday, 15 July following the publication of the Government’s Summer Economic Statement. The Minister confirmed Ireland is committed to the negotiation process on the OECD’s two-pillar plan to reform international tax rules, as agreed by the 132 countries, “to see if we can enter the agreement at some point”, but he is making the case for Ireland to retain its 12.5 percent rate.

The agreement as currently drafted refers to a global minimum effective tax rate of at least 15 percent. The Minister detailed that key feature of the agreement, such as the calculation of the tax base in each jurisdiction, do not have the “certainty or precision that is needed for this country to make an evaluation about what to do”. The Minister stated that whether Ireland is in the final agreement will depend on the detail that is included in it. He further if there is an agreement which he believes to be in Ireland’s national interest to be a part of, he will recommend that agreement to the Government.

The Minister considers that there is enough international understanding of Ireland’s position to be able to move forward with the negotiation process.

In response to parliamentary questions on the same day, the Minister for Finance further explained, that, “Ireland has fully supported the Pillar One proposals”, which propose a re-allocation of a proportion of tax to the market jurisdiction. While recognising that this would cost Ireland corporation tax receipts, the stability and certainty Pillar One is said to bring to the international tax framework is considered to underpin economic growth for all to benefit.

“Ireland expressed our broad support for the agreement on Pillar Two but noting our reservation about the proposal for a global minimum effective tax rate of ‘at least 15%’”, the Minister explained.