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Ireland said it “is not in a position” to join the consensus on a global corporate tax agreement, given reservations about the proposal for a global minimum rate of at least 15%.
Earlier: Global Tax Overhaul Endorsed by 130 Nations as Deal Gets Closer
The country, which has a corporate tax rate of 12.5%, “fully supported” a separate proposal to re-allocate a proportion of tax to the market jurisdiction, the government said in a statement.
“I was not in a position to join the consensus on the agreement and specifically a global minimum effective tax rate of ‘at least 15%' today,” Finance Minister Paschal Donohoe said. “I have expressed Ireland's reservation, but remain committed to the process and aim to find an outcome that Ireland can yet support.”
The nation will “constructively engage” in “further discussions and technical work over the coming months,” the government said.
Details of the agreement have emerged “over the last number of days,” and there were some areas “that are important to many countries that will, in the coming weeks, require further fleshing out and further clarification,” Donohoe told reporters at a briefing in Dublin.
The minister also said he intends to hold a public consultation in Ireland on the draft agreement.
“Any minister, having made the decision today, will have to explain that decision to their parliament, and to their governments.”
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