Michael McGrath (Cork South Central, Fianna Fail)
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47. To ask the Minister for Finance the progress of BEPS 2.0 in the OECD and the proposals for a minimum effective tax rate and for a digital tax at OECD level; and if he will make a statement on the matter. [10329/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy is aware that OECD is currently undertaking a significant project to address the tax challenges of the digital economy, sometimes referred to as BEPS 2.0. A series of proposals have been developed under two Pillars – Pillar One and Pillar Two.

The work under ‘Pillar One’ focuses on the distribution of taxing rights in respect of highly digitalised activities and seeks to undertake a coherent review of the profit allocation and nexus rules used in the existing international tax framework. The work under 'Pillar Two' is examining the possibility of agreeing global rules on minimum effective taxation for corporate profits.

My consistent view is that a certain, stable, and globally agreed international tax framework is vital to facilitate cross border trade and investment. The tax challenges that have arisen from the digitalisation of the economy are global in nature and thus require global solutions. I believe it is important the OECD work is successful to provide certainty in the international tax framework into the future.

Discussions continue to progress, albeit remotely, but there remains some way to go both in terms of reaching agreement at the OECD and subsequently in implementing whatever eventually emerges from the OECD discussion. The current crisis has impacted the OECD's planned timelines, with key meetings moved out from July to October 2020. The OECD’s ambition to find political agreement before the end of 2020 remains in place although further technical and implementation work is likely to continue over a longer period.

What is achievable at the OECD may be ultimately be affected by the current crisis as countries assess the cost of COVID-19 to their economies. Ireland remains fully engaged in the talks at the OECD and will continue to contribute constructively to the work.