The US has made a new offer that a global minimum corporate tax rate could be set at 15 per cent in an effort to get agreement at talks underway at the OECD. This is seen as an effort to get countries with lower corporate tax rate like Ireland on board for an agreement. Agreement on a global minimum tax rate at the OECD would not be binding on lower-tax countries like Ireland, but it would lead to pressure to increase our current 12.5 per cent rate. Agreement on a global minimum rate would effectively mean Ireland and other lower tax countries would be severely limited in using tax advantages to attract foreign direct investment. Minister for Finance Pascal Donohoe has expressed reservations about the minimum tax plan and argued that smaller countries should still be able to use tax to attract investment.

Source: The Irish Times May 20, 2021 21:56 UTC