Fri, 18 Jun 2021

DUBLIN, Ireland: As the G7 countries move forward on creating a tax for multinational firms, Ireland's finance minister said he is confident that the country's low-tax economy would continue to encourage international investment and the creation of jobs.

Proposed plans call for the United States, Britain and other nations to put in place a minimum global rate of at least 15 percent for multinational firms. Also, taxes will be higher in those countries in which the multinational companies sell goods and services.

Ireland has long said that any agreement on a tax for multinationals must address the needs of both small and large countries.

But Paschal Donohoe, who attended Saturday's meeting as president of the Euro Zone's grouping of finance ministers, said the fact that multinationals are "well embedded, in terms of the physical infrastructure of our country" due to their being based in Ireland for years and because Ireland has said it will remain a partner with multinational companies, regardless of new taxes.

Meanwhile, German Finance Minister Olaf Scholz also said Ireland will continue to remain an attractive destination for multinationals.

"I'm sure that this will be a good story for all countries, also for Ireland in the end," Scholz told Irish broadcaster RTE.

In Ireland, large multinationals, such as Apple, Facebook and Google, employ some one-in-eight workers and account for over 80 percent of corporate tax receipts.

Donohoe noted that Ireland's annual corporate tax collection will be 2 billion euros lower by 2025 due to the new tax structure.

However, it is expected to increase gradually to 12.5 billion euros annually, from an estimated 11.6 billion this year.

Sign up for New Jersey State News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!