Finance Minister predicts drop in Irish corporate tax revenue
Paschal Donohoe provided the latest projections on how Ireland’s tax revenues will be affected by changes in global tax policy.
Ireland’s corporate tax revenues will face a significant decline in the coming years, the finance minister predicted on Tuesday.
Paschal Donohoe said changes in global tax policy will negatively impact Ireland’s corporate tax revenues over the next few years.
Speaking outside government buildings on Tuesday afternoon, Mr Donohoe said he expects Ireland’s corporate tax revenue to decline by around half a billion euros per year over a period of three to four years.
“By the mid-2020s, we expect our corporate tax collection to be â¬ 1.5 billion to â¬ 2 billion less than it would otherwise have been in the absence. of climate change that has now occurred in corporate tax policy, âhe said. noted.
A new tax report, released Tuesday by the finance ministry, warns: payers possessed.
Corporate tax revenue in 2020 rose 9% – a jump of nearly â¬ 1 billion to â¬ 11.8 billion, the highest level on record.
Earlier this year, the G7 countries pledged to have a corporate tax rate of at least 15%. Last month, Mr Donohoe pledged to defend Ireland’s 12.5% ââcorporate tax.
Mr Donohoe said he hoped the government would be clearer on the OECD tax deal by October. He also said it was important to carefully consider how any deal would be implemented – something he said could be clear by early 2022.
Ireland was one of only five countries not to sign the major OECD agreement, which is supported by more than 130 countries around the world, as well as the EU.
Figures from the Ministry of Finance also show income tax revenues fell 1% to â¬ 22.7 billion – what the report calls a “very modest drop” despite the impact of the pandemic world on personal finance.