Minister Paschal Donohoe comments on corporate tax reform agreement at BDO Ireland-EM Ireland Webinar
Dublin, 15 November 2021: BDO in Ireland and EM Ireland today held a webinar entitled “A New Deal on Corporation Tax” with key speakers on tax in Europe and the US. The OECD’s global tax deal across 136 jurisdictions has led to agreement on a 15% minimum corporation tax rate and the allocation of certain taxing rights to market jurisdictions.
Speaking about the event the Minister for Finance, Paschal Donohoe T.D., outlined his support for the recent global agreement,
“I was delighted to speak at this important event to provide my perspective on the recent international agreement. On 8 October, Ireland joined 135 other jurisdictions in a landmark agreement to reform international corporate taxation, which will provide long-term certainty and stability to the benefit of governments, business and citizens. As a small and open economy, it is essential that Ireland adapts and evolves in line with changes in the international environment.
“This agreement is a fair compromise reflecting the interests of the many countries involved in the negotiations and is the capstone to a process of international tax reform that began almost a decade ago and allows Ireland to ensure we will remain competitive into the future, and we will continue to be an attractive location and ‘best in class’ when multi-nationals look to investment locations.”
Pascal Saint-Amans, Director of the Centre for Tax Policy and Administration at the OECD said,
“The agreement reached in October 2021 among 136 members of the OECD/G20 Inclusive Framework brings the international tax system into the 21st century. This landmark deal comprises 94% of global GDP and represents the buy-in of developed and developing countries, small and large countries, all of which are from diverse geographic regions. The agreement will bring much needed certainty and stability to the international tax system. It was estimated that tax and trade tensions could cost more than 1% of global GDP in the absence of an agreement. The fact that Ireland joined the agreement is testament to the importance of this once-in-a-generation opportunity to update the international tax architecture to make it truly fit for a globalised – and increasingly digitalised – world. I am grateful for the robust collaboration and good faith Ireland demonstrated throughout the two-pillar negotiations. By making the international tax system fairer and work better, the agreement reached on 8 October by Ireland and 135 other Inclusive Framework members will ensure that the fruits of globalisation will continue to be realised, but in a manner that ensures that taxation is aligned with where value is created. Moving forward, countries will attract FDI based on a variety of factors, including the quality of human capital and skills of a country’s workforce, for which Ireland will no doubt continue to excel.”
Kevin Doyle, Tax Partner with BDO in Ireland said,
“At BDO, we will continue to navigate our clients through this new period of tax reforms, offering advice and support in the implementation of these new global tax rules. This allows for businesses to plan accordingly and have certainty in their business operations, both here in Ireland and abroad. At BDO, we are continuing to see intertest for new entrants to the Irish market along with existing companies looking to expand their businesses.”
Julie Sinnamon, Chair of EM Ireland commented,
“The OECD agreement on global tax is a landmark agreement on many levels. This agreement will provide much needed certainty for businesses going forward. This timely webinar by EM Ireland in co-operation with BDO Ireland provided a one-stop-shop for business to understand and prepare for the challenges and opportunities that will arise.”
The discussion was moderated by Suzanne Lynch of Politico and also saw contribution from NUI Galway lecturer, Mary Cosgrove.
To watch the event back click here.
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Lisa Nic an Bhreithimh, Head of Communications and Education, European Movement Ireland | 087 9503539 | E: email@example.com
Clara Hickey, Client Associate Consultant, Teneo | 083 8991140 | E: Clara.Hickey@teneo.com
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