The Irish government signed up to OECD proposals for a global minimum effective tax rate of 15 percent for multinationals with global revenues in excess of €750 million. Ireland has negotiated an effective minimum rate set at 15 percent instead of the original “at least” 15 percent proposal by the OECD and endorsed by the G7 in July this year. Ireland has also secured agreement that the 12.5 percent rate continues to apply to companies below the €750 million revenue threshold. Speaking on the announcement, Minister for Finance, Paschal Donohoe said, “We have secured the removal of ‘at least’ in the text. This will provide the critical certainty for Government and industry and will provide the long-term stability and certainty to business in the context of investment decisions”. The Department of Finance says the new rules are expected to come into play as early as 2023.

The minimum effective 15 percent rate will apply to 56 Irish multinationals employing approximately 100,000 people, and 1,500 foreign owned MNEs based in Ireland employing approximately 400,000 people. In a press release, Minister Donohoe indicated that he expected Ireland to continue to remain a very attractive location for FDI long after the OECD agreement is implemented.