Michael Lowry (Tipperary, Independent)
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180. To ask the Minister for Finance if he has reconsidered his support for the enactment of a proposed European Union directive implementing a minimum corporate tax rate, given the increased pressures on Irish and European Union competitiveness as a result of the Russian invasion of Ukraine. [35936/22]

Michael Lowry (Tipperary, Independent)
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181. To ask the Minister for Finance if he plans to implement the proposed global minimum tax rate as part of Finance Bill 2023. [35937/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 180 and 181 together.

It is first important to note that Russia’s war is illegal, immoral and unjustified. Ireland’s support for Ukraine’s sovereignty and territorial integrity is unwavering.

We have been working closely with our EU partners and fellow Member States in the adoption of sanctions in response to Russia’s violation of Ukraine’s territorial integrity.  Sanctions will not be cost-free for the EU and Ireland, but Russia’s behaviour leaves no alternative.

However, notwithstanding these challenges, Ireland remains supportive of the two-pillar solution for the taxation of the digital economy reached globally at the OECD, an agreement to which we signed up along with over 130 other countries in October 2021.  The decision to join the global agreement was not taken lightly, and I firmly believe this agreement brings a unique opportunity to reframe the international taxation architecture which has largely remained in place for almost a century.

My long-standing position is that the international tax system needs to adapt to keep pace with changes in how business is conducted internationally. This is a global issue which requires global action to solve in a coordinated way. The OECD agreement will ultimately bring long-term stability and certainty to the international tax framework based on a shared understanding of where value is created in digital business models.  This stability is essential for businesses to plan medium- and long-term investments, driving employment and economic growth.

Ireland has been very active in recent years in implementing international tax reforms. I published Ireland’s Corporation Tax Roadmap (2018 and 2021 update) to set out our commitments made and the significant, concrete actions we have taken in response. My Department facilitates extensive engagement with stakeholders in advance of new legislative measures being introduced and this collaborative, transparent process provides certainty to businesses situated here and those considering investing into the future.

It is therefore my view that a considered, collaborative implementation of the Pillar Two minimum tax agreement, in conjunction with our EU and OECD partners, continues to be in the best interests, both of Ireland and of global businesses investing here.