Gerald Nash (Louth, Labour)
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31. To ask the Minister for Finance for his view on the future of the OECD corporation tax reform process given the ongoing uncertainty in terms of the US government’s position on the initiative; and if he will make a statement on the matter. [5150/25]

James Geoghegan (Dublin Bay South, Fine Gael)
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32. To ask the Minister for Finance if he will outline the impact on Ireland of the decision of the United States to withdraw from the OECD's global corporate tax agreement;; and if he will make a statement on the matter. [5078/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 31 and 32 together.

Ireland was among almost 140 jurisdictions that signed up to a political agreement in October 2021, through the OECD/G20 Inclusive Framework on BEPS, on a new tax framework to address the tax challenges arising from the digitalisation of the economy.

Pillar Two of the agreement provided for the adoption of a new global minimum effective tax rate of 15% applying to multinationals with global revenues in excess of €750m. Pillar Two allows for the retention of our domestic 12.5% corporation tax rate for the 95% of the companies in Ireland that are out of scope of the agreement.

Ireland implemented the Pillar Two 15% minimum effective tax rate for large corporates via transposition of the EU Minimum Tax Directive as part of Finance (No. 2) Act 2023. In addition, several other countries with large economies, including Japan, the UK, South Korea, Canada and Australia, have legislated for or are progressing legislation in relation to the Pillar Two of the OECD agreement.

I note the position of the US administration in relation to the OECD agreement and the Presidential Memorandum issued on 20 January. This is of course a regrettable development but opportunities do exist to engage with the new administration to explore a path forward which addresses our mutual interests.

Huge progress has been made globally on the implementation of the global minimum tax in recent years and it will be important to protect that progress and explore opportunities to address the concerns that have been raised.

I believe that it will be important for all parties to engage constructively over the coming months to examine mutually beneficial solutions to these issues and we will continue to lend our support to such an approach through our engagement at all levels including the EU, OECD and G20.