Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I welcome the opportunity to brief the Dáil on the international tax discussions on foot of the G7 meeting, which I attended in my role as president of the Eurogroup. It is important to stress that the Government believes that it is in everyone’s interest to achieve a sustainable, ambitious and equitable agreement on modernising the framework for international tax to reflect increasing globalisation and digitalisation. Second, it is also important to highlight that reform of the international tax rules has now been part of a process since 2013. Since 2018, Ireland has constructively engaged in the more recent discussions to find a solution at the OECD. This is the subject of the current negotiations which are expected to conclude this year. The OECD is proposing a two-pillar solution. Pillar 1 concerns the allocation of a proportion of taxing rights, while pillar 2 is in regard to a minimum effective tax rate for larger companies.

The Government noted the communiqué of 5 June from the G7 finance ministers, which includes the desire for a global minimum effective tax rate of at least 15%. Deputy Doherty asked a specific question about that meeting. The only document which emerged from the G7 regarding that group's intent was the communiqué to which the Deputy referred. As important as that communiqué is, and it is important, it is also important to stress that it now provides a large input into a process in which 139 countries are now participating. The minimum rate does create challenges for Ireland and other small countries for good reasons. It is my intention to continue to make the case for an agreement to accommodate Ireland’s low but substantial 12.5% rate.

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