Ireland rejects US proposal for a global minimum tax rate

Irish Finance Minister Paschal Donohoe said on Tuesday (May 25th) that Ireland did not intend to increase its corporate tax rate, one of the lowest in the world, rejecting the plan to US President Joe Biden to set a global tax rate for” at least “ 15%.

“We have really big reservations about a global minimum tax rate at such a level that it would mean that only certain countries, and certain large economies, will be able to benefit from this base.”, the minister said on Sky News.

According to the channel, Donohoe predicted that the country would maintain its corporate tax rate at 12.5% ​​for many years to come.

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Negotiations underway at the OECD

Negotiations are underway at the Organization for Economic Co-operation and Development (OECD), at the initiative of Washington, in order to set up a tax rate on the profits of multinationals which is harmonized in the various countries.

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The Biden administration on Thursday proposed to its OECD partners to set 15% ” at least “ this rate “Floor”, inviting discussions to continue with the objective of being ” ambitious “ and “To increase this rate”. The reform aims to put an end to tax competition between countries.

The project led by the Biden administration comes as the President of the United States seeks to raise his corporate taxes in order to finance a massive investment plan.

The OECD, which brings together 36 countries including Ireland, so far wanted to obtain a global agreement in principle at the G20 Finance on July 9 and 10, then at a final meeting in October.

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The World with AFP