Ireland, Model Student
Ireland’s distinct speech with the Minister of Finance, Pascal Donohue, presiding over the Eurogroup, which emerged as an example of goodwill policies in the ensuing years of the economic crisis and European rescue plans and is now well integrated into European institutions. Tactical alliances and negotiation skills have allowed Dublin to withstand the onslaught of those countries for years – the French lead – that this is an unfair competition for the 12.5% corporate tax, and moreover, for targeted facilities or contracts. It has either favored exemptions or allowed multinational corporations to pay trivial taxes.
Tax attractiveness was a key factor in bringing the headquarters of giants like Google, Apple and Facebook to Dublin. So yesterday, Donoho, the finance minister who expressed Irish reservation on Thursday, reiterated Dublin’s opposition: “In Ireland – he said in a radio interview – this is a very sensitive key, it is not enough in the text presented to me.
However, the minister expressed optimism that an agreement would be reached within a year. Dublin is likely, with more concessions, willing to say yes; The business world also seems to be ready for the new rules, the appeal of which is based on other factors, taxes and investments now consolidated in the country.
Estonia and tax-free profits
Estonia has, for years, topped the American Think Tank Tax Foundation’s tax competition rankings, subject to a relatively low corporate tax on its strengths (14 to 20% of profits), however, only in the case of dividends. In other words, reinvested profits are not taxable.
The Baltic country strongly opposed the new rules. The finance ministry said in a statement yesterday that the country was not ready to “fully support” the proposals for a global minimum tax. In recent days, Finance Minister Kate Pentus-Rosimannas has more explicitly (harshly) called the proposal “dangerous for businesses, international competition and jobs.”
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