Google, Apple and Microsoft headquarters in Ireland lead 15% tax debate: reports
- Ireland – home of Google, Apple, Microsoft – has said it is ready to “compromise” on corporate taxes.
- G7 leaders have agreed to a global minimum corporate tax rate of 15%, which is higher than Ireland’s 12.5%.
- Irish Finance Minister told CNBC on Friday that “legitimate tax competition” had a role to play.
- See more stories on the Insider business page.
Ireland – the European home of tech giants like Apple, Google and Microsoft – has said it is ready to “compromise” on global minimum tax rates.
Paschal Donohoe, Ireland’s finance minister, told CNBC on Friday that the country would “engage” in tax rate negotiations “very intensely”.
“… and I hope that an agreement can be reached which recognizes the role of legitimate tax competition for small and medium-sized economies,” Donohoe said.
The Group of Seven Rich Countries this month agreed to an overall minimum corporate tax rate of 15%, higher than Ireland’s 12.5%. President Joe Biden’s administration pushed the deal, saying it would be a “crucial step towards ending the decades-long race to the bottom” on corporate tax rates. companies.
Ireland has long attracted multinational companies looking for a European outpost with great rates, sometimes to the frustration of its European neighbors. Apple in 2016 was targeted by the European Commission, which said the company had to reimburse around $ 15 billion in taxes. Apple appealed.
Big Tech this month mainly said it welcomes a uniform global rate.
“Facebook has long called for reform of global tax rules and we welcome the significant progress made at the G7,” Nick Clegg, Facebook vice president of global affairs, told Insider.
When announcing the G7 tax deal, Donohoe said on Twitter that 139 countries would potentially be involved in such a tax deal. As such, it should work for nations large and small, he said. Developing countries and rich countries should all agree, he said.
“It is in everyone’s interest to reach a lasting, ambitious and fair agreement on the international tax architecture,” he said. mentionned at the time.