Global tax, Ireland and Estonia also sign OECD-G20 agreement

(Teleborza) – Ireland has decided to join the global agreement on the lowest tax on multinational companies. The news came directly from the country’s finance minister, Pascal Donohue, who announced the Dublin government’s decision at a press conference yesterday. “This is the right decision,” the minister said, marking the end of the tax-cutting economic policy introduced in the country in 2003. EU Economic Affairs Commissioner Paulo Gentiloni agreed. “This is an important and extremely positive step in Europe’s collective efforts to build a better and more sustainable global tax system,” he wrote on Twitter. The French Secretary of State for European Affairs, Clement Boone, even commented on the Irish decision in a tweet: “Ireland is holding a bold European election, an important step towards great international tax justice.”

In July, the G20 meeting in Venice backed a general agreement reached in the OECD with a 15% reduction in taxes for multinational companies. However, this agreement has not been signed in Ireland, Hungary and Estonia. “The government has now accepted my recommendation for Ireland to join the international consensus,” Donoho said. Dublin will raise the corporate tax rate to 12.5%. A tax system that over the years has attracted many multinational companies, especially in the technology sector, and created tension with EU partners. The entry of Estonia also arrived yesterday evening. “We are entering into a global tax agreement,” said Premier Kaja Kallas.