Ron Cogswell
Ireland has called for a compromise on a flat tax rate for international corporations, Finance Minister Paschal Donohoe told CNBC.
Earlier in June, the G7 countries agreed to set a flat tax for corporations at no less than 15%. The measure should force the biggest international companies to pay more tax wherever they do business, as well as end a "race" between countries trying to attract as many multinational giants as possible with low tax rates and incentives.
The plan is now being discussed at the level of the Organisation for Economic Cooperation and Development (OECD) and will be discussed later by the leaders of the G20 countries, CNBC writes.
Donohoe said Ireland plans to "engage very intensively in the OECD process" in the "coming weeks and months" to result in an agreement that takes into account the interests of "small and medium economies" and the role that "legitimate tax competition" plays in their development. "We still have some time before a final agreement is reached, so it is difficult for me to say yet what that compromise might look like. But I think it is in everyone's interest to find one," the minister said.
Ireland is known for its low corporate tax rate: for resident companies it is only 12.5%. The country is home to European offices of major companies such as Apple and Google, among others.
source: cnbc.com
Earlier in June, the G7 countries agreed to set a flat tax for corporations at no less than 15%. The measure should force the biggest international companies to pay more tax wherever they do business, as well as end a "race" between countries trying to attract as many multinational giants as possible with low tax rates and incentives.
The plan is now being discussed at the level of the Organisation for Economic Cooperation and Development (OECD) and will be discussed later by the leaders of the G20 countries, CNBC writes.
Donohoe said Ireland plans to "engage very intensively in the OECD process" in the "coming weeks and months" to result in an agreement that takes into account the interests of "small and medium economies" and the role that "legitimate tax competition" plays in their development. "We still have some time before a final agreement is reached, so it is difficult for me to say yet what that compromise might look like. But I think it is in everyone's interest to find one," the minister said.
Ireland is known for its low corporate tax rate: for resident companies it is only 12.5%. The country is home to European offices of major companies such as Apple and Google, among others.
source: cnbc.com
