Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

91. To ask the Minister for Finance his views on the proposal from a group (details supplied) regarding the introduction of a foreign minimum tax requirement in tandem with the proposed reduction in the US corporate tax rate to 20%; if he has conducted a risk impact assessment of these proposed changes to the economy here; and if he will make a statement on the matter. [42022/17]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

92. To ask the Minister for Finance if he has written to or spoken to his counterpart in the US Administration in relation to President Trump's plans to change the way in which US corporate tax operates; and if so, if his department officials are preparing a response to same. [41865/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 91 and 92 together.

I note the publication by the US administration and Congressional leaders of a framework providing additional detail on their proposals for US tax reform.

While a reduction to the US corporate tax rate and a move to a territorial system are expected to be part of any legislative proposal building on this announcement, the substantive detail of any legislative proposal is not yet known. The framework suggests that the US proposals will seek to tax the global profits of US multinationals at a rate below whatever new headline rate is agreed. There has been no indication as to what level this lower rate may be set at. If agreed, this would represent a change from the current system where the US tax the global profits of US multinationals when those profits are repatriated to the US at the full headline US tax rate.

It is expected that the legislative debate on the proposals will begin later this month. Agreement between the House of Representatives, the U.S. Senate and President Trump will be needed before any legislation can ultimately be agreed and 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.

I have not yet spoken directly to my counterpart in the US administration in relation to the administration's tax reform plans. My officials in the Department of Finance and our Embassies in the US, are closely tracking the debate in the US and continue to engage with business and others to fully understand the potential impacts of any US reform.