No guarantees Ireland will keep corporate tax rate of 12.5% – .

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No guarantees Ireland will keep corporate tax rate of 12.5% – .


Taoiseach Micheál Martin said he would not commit to US businesses “one way or the other” that Ireland maintains its corporate tax rate of 12.5%.

It comes as Ireland is under pressure to sign an Organization for Economic Co-operation and Development (OECD) plan for a global corporate tax rate of at least 15%. Ireland is one of the few countries to resist these plans.

Mr. Martin is in New York, where he attends United Nations meetings and will also support the work of IDA Ireland, which is responsible for attracting foreign investment to Ireland.

The 12.5 per cent rate has been the cornerstone of Ireland’s strategy to create jobs in Ireland for decades.

When asked if he would tell US companies that Ireland is committed to the 12.5 percent rate, Martin said he would not make any commitments “in a sense. or in the other ”towards individual companies.

He then underlined that the talks on the OECD agreement are underway and that the next six weeks will be important to bring these talks to a successful conclusion.

“We have problems with part of the text and where the agreement is at this stage, but other discussions are underway,” he said at a joint press conference with the governor of New York, Kathy Hochul.

The Taoiseach exchanges gifts with New York Governor Kathy Hochul in New York. Mr. Martin received a New York GAA jersey. Ms. Hochul, who has Kerry roots, was given that county’s GAA jersey. Photography: Cormac McQuinn

He said the 12.5 percent rate was a “key part of our tax policy”, but Ireland is engaging in the OECD process.

Mr Martin was asked on Bloomberg TV if Ireland has committed to the 12.5% ​​corporate tax rate.

He said it was an important part of the “wider tools” used to attract business to the country.

However, Mr Martin highlighted the “very critical” role of “human capital” in the success of technology and life science companies in Ireland.

He explained how Ireland has “accumulated a lot of strengths in this area” through its approach to migration and joining the European Union.

He said: “We have a large pool of talent who want to come to Ireland to live, work and enjoy a good quality of life. It is very important for the Googles of this world, for the Amazons and the Apples.

He said Ireland had engaged “constructively” in the OECD process and was “broadly in favor” of it, but that “we have not yet joined the consensus”.

He said it was because of some aspects of it that “don’t give any certainty of continuity.”

Taoiseach Micheál Martin is attending UN meetings in New York this week. Photograph: Nick Bradshaw / The Irish Times

He said business is demanding it and “there can’t be a scenario where that can change every two or three years, and that’s something that remains to be discussed as part of this process.”

Ms Hochul was asked if she sees Ireland as a tax haven, given that combined federal and state corporate taxes account for over 26% in New York City.

“Regardless of how a business calculates its tax advantages and disadvantages, we will see tremendous synergy between US businesses and places like Dublin,” she said. “Companies like Apple and Google and Facebook, companies that are in New York State but also have their European headquarters in Ireland. Thus, each company will make its own decision.

Earlier, Finance Minister Paschal Donohoe said Ireland could stay out of the tax deal amid concerns over “deeply problematic” aspects of the plan to tax corporate profits around the world.

Despite this, European Economic Commissioner Paolo Gentiloni, who was in Dublin on Monday for talks, said he was “fairly confident” that an agreement can be reached.

Speaking after their meeting, Mr Donohoe said he stressed “that the” at least ” [referring to a corporation tax rate of at least 15 per cent] is deeply problematic for Ireland ”.

Mr. Donohoe said the state was “in the OECD process, but we’re not in the deal right now.” I underlined the enormous challenge and importance of this process for Ireland and how the stability of corporate tax policy is essential for our economy. “

He warned Ireland’s position may not change.

“I remain determined to see if the process can lead to an outcome that Ireland would be prepared to consider joining. But also, I communicated to my colleagues that where we are at the moment – of not being in the agreement – is a position which could continue, ”he said.

“I am very clear that it is not appropriate that Ireland is in the deal. Now that may continue to be the case. But also, we are working very hard to see if an agreement is possible that would allow Ireland to join.

European Economic Commissioner Paolo Gentiloni and Minister of Finance, and Eurogroup President Paschal Donohoe in Dublin following a meeting between the two in government buildings today. Photograph: Gareth Chaney / Collins

The government also wants to know if the US Congress accepts the plan before deciding whether to move.

Mr. Gentiloni said it would be “nonsense” to suggest that the United States is not centrally involved. “It is thanks to the United States that this global agreement. . . is now under discussion.

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