15% Tax Rate ‘Is The Right Decision'

Move hits multinationals. But Ireland will lose €2bn

- Ferghal Blaney

IRELAND’S corporate tax rate is going up to 15% – but the Finance Minister last night reassured the country the Government has not made a terrible mistake.

“This is the right decision” Paschal Donohoe said, even though we are set to lose €2billion in lost taxes.

The new rate – up from 12.5% – will apply to all firms operating here with a total turnover of more than €750million.

This number is deliberately being introduced to target multinational companies.

Smaller, indigenous firms won’t have such huge turnovers and they will continue to benefit from the lower rate.

Mr Donohoe insisted: “The upsides far outweigh the downsides.”

One benefit is that we will no longer be accused of being a tax haven for facilitating unethical “profit shifting” with multinationals moving paper profits to our lower tax regime.