The government confirmed on Thursday they will be joining the international agreement for a global minimum corportation tax.
The country has attracted many large companies to have a base in Ireland in order to save on tax. Previously the rate of corporation tax in the Republic of Ireland has been 12.5% and it is now increasing to 15% – but will only apply to companies with revenue over €750 million. Companies with lower revenue than that figure will conitnue to pay 12.5%.
There are hundreds of US companies alone based in the Republic of Ireland, employing over 180,000 people, including Apple and Google.
Initially Ireland did not sign up to the agreement and have only done so as of Thursday (07/11/2021).
Paschal Donohoe, the Minister for Finance of Ireland, believes Ireland will remain attractive and competitive to large companies despite the increase in tax. He said:
“We will remain an attractive location and ‘best in class’ when multi-nationals look to investment locations.”
The changes are expected to happen by in 2023, at the earliest.