Ireland joins global agreement on 15% tax for multinationals and the measure comes into effect in 2023

Ireland joins global agreement on 15% tax for multinationals and the measure comes into effect in 2023

This Thursday (7), Ireland decided to increase corporate tax to join the global tax reform agreement that establishes a 15% minimum corporate tax for multinational companies. This was one of the last obstacles to the success of the project.

“After detailed discussions, the government agreed to join the Irish International Convention on Taxation,” Finance Minister Pascal Donohue told a news conference in Dublin. “This is a very important step in global reform,” he said.

To reach an agreement, the text now refers to a less effective corporate tax of 15%, instead of “at least 15%”, which Dublin opposed, opening the door to other countries being forced to apply higher rates. .

After months of stagnation, Irish authorities released a series of statements on Wednesday indicating that their country – 12.5% ​​of the world’s lowest corporate tax – was approaching a compromise.

Global tax

The historic agreement, announced in July under the Organization for Economic Co-operation and Development (OECD), was signed by 134 countries, demanding that multinational corporations with a turnover of 750 million € 860 be taxed at least 15% of the effective tax of one million or more.

Among them are several large American tech groups, Facebook and Google, which are setting up their European headquarters in Ireland and are attracting low taxes.

Donoho welcomed Thursday’s agreement, saying it would provide “security” and allow Dublin to remain an “attractive destination” for businesses.

With the signing of this commitment, Dublin questions its low tax economic model, which has allowed it to attract many multinational companies, especially the technological and pharmaceutical giants.

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At a time when countries around the world are seeking funds to repair public finances devastated by the epidemic, the reform is intended to combat tax evasion by multinational corporations registered in countries with lower tax rates.

The NGO Oxfam lamented, however, that “the historic agreement to end the era of tax havens has become a change for the benefit of rich countries.”

“The proposal for a new tax rate of 15% (lower percentage) will benefit rich countries and increase inequality. The G7 and the European Union will recover two-thirds of this tax revenue, but only 3% of the world’s poorest nations represent more than one-third of the world’s population,” said Susanna, head of tax policy at Oxfam. Ruiz moaned.

This worldwide tax reform is expected to take effect before 2023.

Source: Folha DS. With information from Paulo

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