American Chamber of Commerce Ireland welcomes certainty on Corporate Tax Rate
The American Chamber of Commerce Ireland today welcomes the announcement that Ireland will sign up to the revised OECD Agreement on global tax reform. The Revised Agreement will provide certainty that the global minimum corporate rate for companies affected will be at 15%, thus removing the significant uncertainty in the proposals as they stood in July surrounding the eventual rate.
Speaking about the announcement, AmCham CEO Mark Redmond said:
“AmCham has always been steadfast in our support of current and previous Governments’ robust defence of our corporate tax regime. Ireland’s track record of success in attracting inward investment, has been driven in part by the certainty provided to those who choose to invest and create jobs in Ireland. US FDI in Ireland accounts for 20% of private sector jobs through direct and indirect employment.
AmCham believes that today’s announcement coupled with the removal of the wording of “at least” from the proposals, in addition to clarification obtained from the European Commission has ensured that the revised agreement ensures essential predictability, stability and certainty for multinational employers. In essence, the Irish government’s clear-headed approach in obtaining clarity, makes this global tax reform package a more predictable and thus better, proposal.
Tax competition within guardrails is a legitimate and necessary tool for small open economies and it is important that smaller nations maintain sovereignty over their tax affairs. The OECD agreement now represents an opportunity for Ireland to reform and enhance our tax policy framework to fully reflect the modern global economy. We warmly welcome the decision by Government to now proceed to sign up the amended proposals.”
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