International News

Ireland finally accepted the minimum rate for CI Tax

By
Jose Maria ALFIN
on
May 26, 2022

Some months ago, I published a video about the minimum tax rate for multinationals at the level of 15%

Some months ago, I published a video about the minimum tax rate for multinationals at the level of 15% (link at https://www.youtube.com/watch?v=YQq3M-xoFQk). Mr Biden as president of the United States decided to put in place that ruling to avoid tax dumping by certain countries.

It is a reality that certain countries have taken the profit of many multinationals moving the main tax domicile to those jurisdictions with lower tax rates. The case of Ireland is prevalent, but many other countries have taken similar decisions. The key problem is not based on the low tax rates but the erosion of profits that, according to international rules, should be taxed in other countries.  

One of the most famous cases in Ireland has one of the lowest tax rates within developed countries (12,5%).

The international pressure is sometimes so strong that Ireland finally had to join the international consensus, and it will increase the rate to 15% for multinationals.

When G7 took that decision, Mr Pascal Saint Amans declared some interesting things to the International Fiscal Association in a public video and can be reviewed at the link: https://www.youtube.com/watch?v=-Rl6OWy5ywU&t=21s.

Nowadays, only two countries are still discussing the matter (within the developed countries).  They are Hungary (with a Corporate Income Tax rate of 9%) and Estonia. We will see what happens in the next months, but I am sure that these countries will join the international agreement. Otherwise, they will suffer the consequences of their decision.

I explain the situation in a video that I have just uploaded to youtube on the link: https://www.youtube.com/watch?v=QePYx4byimk.

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