Donoho, who is also chairman of Eurogroup, said Ireland, which currently has a corporate tax rate of 12.5 per cent, would stop receiving at least $ 2 billion in taxes. For Economic Cooperation and Development (OECD).
130 countries and jurisdictions reached an agreement yesterday on the imposition of an international tax that would impose a dual system for the sharing of taxes by large corporations, especially in the digital sector, and the global minimum rate of corporate taxation.
The lowest tax-paying republics are Ireland, most recently Barbados, Estonia, Hungary, Kenya, Nigeria, Peru, Sri Lanka, St. Vincent and the Grenadines.
I think it is important to acknowledge our commitment to the rest of the world on how to deal with corporate taxes, and to act with confidence and clarity about our national interests and our position, ”Donoho said in an interview with a radio station today. .
The Minister indicated that Ireland would continue in this negotiation process but warned that this was a very delicate matter. The text presented to him regrets that “essential issues are not clearly addressed.”
While acknowledging that “change is inevitable”, Donoho insisted that the OECD proposal needed “change” because it was clear in the “last days” that some of its points would “have serious repercussions for Ireland”.
“What happened this Thursday was expected. This is the first step in a long process and I will continue to work,” he added.
The imposition of a lower tax in Ireland has recently led to conflicts with some EU partners, who see this as unfair competition and distrust the legitimacy of the legislation in this regard.
Microsoft’s Irish subsidiary Microsoft Round Island One has reported a profit of 260 billion euros in 2020, according to The Guardian, which has zero tax on Bermuda due to its tax residency.
Dublin also has another open battle with the European Commission, which appealed against the European Court of Human Rights’ decision to waive Ireland’s obligation to levy 13 billion euros in unpaid taxes on the American multinational Apple between 2003 and 2014.