Facebook, Apple, Google and other major tech firms with offices in Ireland will reach the bottom due to the increase in corporate taxes.
The government said Thursday that Ireland – which is also home to large offices for Twitter and PayPal – is raising its notorious 12.5% corporate tax rate to 15%.
The country has a long record of using low corporate tax and generous tax breaks to lure American tech companies and other multinationals. Apple, Microsoft and Intel have all been in the country since the 1980s.
Ireland’s planned increase – which will push the country forward to close the global tax deficit by the 140-member Organization for Economic Co-operation and Development – will have an impact “early in 2023”. The Irish Treasury Department said..
The tax increase will apply to companies that earn at least 750,000 euros – or about 86 8,868 million a year. The government says about 1,500 foreign companies and 56 Irish companies, employing a total of 500,000 Irish people, meet this standard.
The United States and other corporate tax-paying countries have been pushing for a global minimum tax since at least the Obama administration – but low-tax EU member states such as Ireland and Estonia have been reluctant to go along with the plan. have been. Opponents say raising taxes will dry up foreign investment.
But Irish Finance Minister Pascal Donohue said in a optimistic tone on Thursday.
“I am confident that Ireland will remain competitive in the future, and we will remain an attractive place and ‘best in the class’ when we look at multinational investment destinations.” he said.