Ireland, minimum global tax at 15%: is it really a revolution?

Ireland complies with the global minimum tax of 15%. The government has given the green light to the OECD agreement for this minimum rate of 15% on profits of companies with a turnover greater than 750 millions. A turning point for Dublin, which therefore abandons the now famous corporate tax of 12, 5% which has represented a cornerstone of its fiscal policy in the last twenty years. One of the reasons that led giants like Google, Facebook and Apple to bring their European headquarters right there.

“It is a balance between our competitiveness and our place in the world. It will ensure that Ireland is part of the solution to the problem, while respecting the future international tax structure . A difficult decision but, which will allow us to remain competitive and attractive towards multinational investments

It has affirmed the Minister of Finance Pascal Donohoe. The new rate will concern over 1500 companies, but small and medium-sized enterprises will be exempted , given the limit linked to turnover.

The thought runs inevitably to the big names in the tech market. For years the debate around the facilitated taxation enjoyed by these realities in Europe has been particularly heated. The adherence of Ireland (and Estonia) to the global minimum tax is certainly an important step, but far from solving. In fact, many questions remain around what has always been the real heart of the problem: establishing that at least part of the profits generated by a multinational must be taxed in the country which the latter actually operates (although based elsewhere).

This is a rule provided for by the agreement on the minimum global tax, but on which it will be necessary to return to the legislative level to clarify some aspects and avoid creating folds to slip into.

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