Corporate tax developments and invitation to Ibec Budget 2022 Briefing
Today undoubtedly marks a pivotal moment for the Irish business model. However, the announcement from Government that Ireland is to join the new international agreement on corporate tax reform is the right decision, at the right time.
Accession to the OECD accord may pose a competitiveness challenge but as Ibec’s Model of Substance campaign has highlighted in recent years, while the low corporate tax rate was a key engine in driving economic growth, the Irish business model does not run on one engine alone.
Ireland’s corporate tax rate is just one branch of a multifaceted package of measures that are attractive to globalised businesses. Despite a change in the rate for a minority of businesses (estimated at 1,500 firms), Ireland’s regime will retain the advantages of certainty on the most competitive rate possible, our existing track record of significant substantial activity and delivery, access to the single market for trade and talent and a business-friendly environment generally. By building on these strengths Ireland can continue to thrive.
Ireland has experienced a significant change in the past, with changes to both the headline regime and to the base. The core reason we continued to thrive despite these changes was radical and concrete action by business and Government. Ibec has been clear for several years that we will need to address the competitiveness challenges which will flow from this week’s decision by setting out clear medium-term policy commitments to improve our standing on other growth levers such as education, digital transformation, innovation, and talent.
I attach a briefing deck that provides insights as to what this week’s developments mean for business and what the next steps are.
Next week will also be important for Irish business with Tuesday’s publication of Budget 2022. On Tuesday evening at 5pm, a panel of Ibec experts will host a virtual event to provide real-time insights and analysis on Budget 2022 and further reflection on today’s international tax developments. You can register to attend here.
As always, get in touch with any queries that you have.
IbecIbec briefing deck - OECD Tax Reforms pdf | 354.7 kb