Global tax changes could hit State’s revenues from next year – Donohoe

Budget planners have factored in loss from 2022 onwards says Minister

US treasury secretary Janet Yellen pictured with Paschal Donohoe at last weekend’s G7 meeting. Photograph: EPA

US treasury secretary Janet Yellen pictured with Paschal Donohoe at last weekend’s G7 meeting. Photograph: EPA

 

State coffers could feel the first impact of a likely €2 billion loss in corporate tax revenues on the back of proposed global changes from next year, according to Paschal Donohoe, Minister for Finance.

The Organisation for Economic Co-operation and Development (OECD) hopes to reach a deal on taxing multinationals, that could result in them paying 15 per cent on profits, by the end of the year.

Mr Donohoe said on Thursday that if a deal were reached, the Republic could begin to see an impact on corporate tax take from next year, rising to around €2 billion by the middle of the decade.

Planning

The Minister confirmed that Government budget planning “included a loss of corporate tax revenues from next year onwards”.

However, Mr Donohoe stressed that agreement had yet to be reached and said the Republic would continue to argue for legitimate tax competition alongside many other small- and medium-sized OECD members.