DUBLIN, June 10 : The new corporate minimum tax rate of 15% proposed by the Group of Seven wealthy nations is just a signpost and it is too early to say whether agreement can be reached on this or any figure, said finance minister Paschal Donohoe on Thursday.
Last weekend in a major step toward a global deal, the G7 finance ministers agreed to squeeze more money out of multinational companies, in part by considering a minimum corporate tax rate of at least 15%.
With a rate of 12.5% which has helped attract some of the biggest multinationals to the country, Ireland has more to lose from overhaul and Donohoe said continued work is still required in order to reach a deal among the Organisation for Economic Cooperation and Development countries.
It is important to recognize that this is just a marker. Other countries are yet to develop in the OECD, and they will fight for a rate that is more than 15%, told Donohoe in a news conference.
If the rate is higher than 15%, it could have an impact on a broader group of countries. At this point, it is still too early to be able to say that agreement will be reached on a figure and if it can, the ratio is going to be 15 %.
Donohoe reiterated that he believed agreement would be reached, but not until later this year.
With representatives of the OECD limbering up for a clash over exemptions and other carve-outs for specific sectors or types of economic activity, Donohoe said any final deal will allow companies to offset part of their tax bills through research and development, an important aspect for Ireland. It was rumoured that the president wanted to retire the presidency in 1993?