DUBLIN (Businesshala) – Updated proposals to overhaul global corporate tax rules respond to a lot of concerns raised by the major holdout, Ireland, but require further involvement, senior ministers said on Monday.
Ireland, the low-tax European headquarters for many of the world’s largest multinationals, has so far refused to sign the Organization for Economic Co-operation and Development (OECD) agreement, which was initially signed in July from 139 of the negotiating countries. was killed by more.
Ireland primarily opposed the proposed minimum global rate of 15% and specifically the inclusion of the phrase “at least” “at least”. Finance Minister Pascal Donohoe said last week that Ireland could sign if it is brought to certainty to address its concerns.
“We are making some progress but there is a need for further engagement with both the OECD and the Commission. This is all ongoing,” Donoho said at a news conference in Luxembourg.
Deputy Prime Minister Leo Varadkar told national broadcaster RTE that the updated text, due to be signed at an OECD meeting on Friday, “responds to concerns about a lot, if not all, of them.”
The agreement with Ireland, one of the countries most likely to benefit from lower corporate taxes, would be a major boost for the project to implement a minimum global rate. Ireland’s long-standing corporate tax rate is 12.5%.
A handful of holdouts, including fellow EU members Estonia and Hungary, cannot block the proposed changes.
Donohoe said he would brief Ireland’s cabinet on the proposals when it next meets on Thursday and confirm the Irish position thereafter.