Written answers

Tuesday, 20 June 2017

Department of Finance

Corporation Tax Regime

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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283. To ask the Minister for Finance the action he has taken to prepare for consequences a change in the American corporate tax rate may have on multinational companies located here; if there has been engagement and communication with the Revenue Commissioners on this topic; and if he will make a statement on the matter. [27797/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I note the proposals that were announced by the Trump Administration for tax reform in recent months.  At this stage, we have yet to see the substantive detail of the overall package that will be proposed by the Trump Administration. Agreement between the House of Representatives, the U.S. Senate and President Trump will be needed before any changes can be introduced. 

The exact implications of US tax reform for Ireland, and the rest of the world, will depend on the exact nature of any changes which are ultimately agreed.

The proposed reduction in the US corporate tax rate is just one aspect of a wider set of proposals. It also remains to be seen whether any reduction in the US corporate tax rate would be permanent or temporary in nature.  At this stage, sufficient details have not been published to enable a comprehensive analysis of the potential impact of the proposals as a whole. My Department, and the Irish Embassy in the US, are closely tracking the debate in the US and we continue to engage with business and others to fully understand the potential impacts of any US reform.  Officials in my Department also keep in regular communication with the Revenue Commissioners on this and other international tax issues.  Consideration is being given as to how best we could analyse the impact of any US tax reform proposal once the details of proposed changes become available. 

One issue that is clear however is that Ireland’s membership of the EU is, and will remain, a key factor in attracting FDI from the US and elsewhere. Global business, from the US or elsewhere, will always want to have operations in the EU, and Ireland will remain very competitive and attractive as an EU location to invest in and do business from.

Ireland’s corporation tax regime and 12.5% corporation tax rate will continue to be competitive while also offering long-term certainty to international business. As always, we will remain alert and responsive to any changes in the US or global tax environment.

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