OECD: towards 15% taxation of multinationals after Dublin's "yes"
Irish Finance Minister Pascal Donohue.
October 7, 2021 in Dublin.
AFP - STRINGER
Text by: RFI Follow
2 min
Where to place the tax cursors in relation to multinational companies?
Pending since the adoption of a historic project of minimum taxation on the largest global companies last July, this question could know its outcome this Friday, October 8.
Because the main obstacle seems to have been overcome.
Ireland has indeed decided to end its opposition to the global reform plan for corporate taxation.
Estonia followed suit.
Finally, a compromise seems to emerge.
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Country chosen by Apple, Google or Facebook to set up their European headquarters there because of its low tax rate, Ireland is ready to accept a compromise setting the taxation of multinationals at 15%.
Dublin could, however, maintain its 12.5 per cent tax rate for companies with turnover below 750 million euros.
Dublin makes compromises
So it will be 15%, but no more.
It seems complicated to go beyond, said the French Minister of the Economy, Bruno le Maire.
A difficult decision, but fair, according to the Irish Minister of Finance.
From the OECD, Pascal Donohue obtained a concession.
While the initial text provided for a corporate tax of “at least” 15%, the minister got rid of these two little words, “
at least
”, a vector according to uncertainties for multinationals established in Ireland, reports
our correspondent in Dublin
,
Emeline Vin
.
For its part, Dublin also made compromises.
By renouncing its very low corporate tax rate, currently 12.5%, Ireland risks losing attractiveness and tax revenue: 2 billion euros less per year, according to the Ministry of Finances.
Unresolved questions ...
But Pascal Donohue admits it: it was not viable for Ireland to stay out of an
agreement signed by 140 countries
.
Too damaging to the influence and trade relations of the small island.
Will this compromise facilitate the support of all?
Difficult to know.
Estonia has already decided to follow suit.
There remain some countries, first and foremost Hungary, which rejects the proposed changes.
These countries have made tax attractiveness their economic model.
A degressive system could be found.
Another subject on the table: what amount will be used as a basis to calculate the tax revenues to be transferred in countries where a company achieves at least 1 million turnover, but where it does not have its head office?
Losing countries were active in trying to counter this initiative
Alexis Garatti, senior economist at Euler Hermes
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