Tax change in Ireland: the government reassures the population
Dublin's business district, photographed October 7, 2021. AFP - PAUL FAITH
Text by: RFI Follow
1 min
Four days after agreeing to waive its particularly low corporate tax rate, Ireland is trying to reassure its entrepreneurial community and especially its population, worried about the impact of such a change in taxation.
The strategy seems to be paying off: the population does not seem to fear much from the reform.
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With our correspondent in Dublin,
É
meline Vin
Employed in the multinational district of Dublin, Jack and Martin fret about the consequences of the agreement reached between their country and the Organization for Economic Co-operation and Development (OECD).
“
The 12.5% tax is an incentive,”
explains Jack, “
it is a major attraction for foreign investment.
Now, companies will surely leave their teams as they are, rather than strengthening them.
"
“
But with the agreement of the OECD,
retorts Martin,
the companies will pay 15% anyway.
As much as it is Ireland which perceives this 2.5% more, rather than another country!
"
► To reread: Towards a 15% taxation of multinationals after the Dublin “yes”
Less pessimistic, but more cynical, John expects nothing to change: “
Frankly, going from 12.5 to 15% is not that huge.
And they will find a way to transfer their money and pay as little as possible,
”he says.
Little risk of the digital giants moving, confirms Jim Stewart, assistant professor of finance at Trinity College:
“
The posted rate may be 12.5% or 15%, thanks to tax credits, the actual rate is often well below.
And there are other advantages to settling in Ireland, for the digital giants: in particular the absence of regulations, for Ireland's lack of means ... Or lack of desire.
"
Along with the tax system, Ireland's failure to regulate GAFA represents the major points of tension with the other countries of the European Union.
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Economy
Taxation
Ireland
OECD
Trade and Trade