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Corporate Tax Take Sustainable to 2020, Review Says

  • Ireland
  • General

14-09-2017

Strong corporate tax revenues from multinational companies based in Ireland are projected to be sustained until 2020, according to a Government-commissioned review of Ireland’s corporate tax code.

The report noted that Ireland’s corporate tax receipts reached €4.6 billion in 2014, increased by 49% to €6.9 billion in 2015 and by a further 7% to €7.9 billion in 2016. The report noted that, “although it is impossible to be definitive and the volatility in receipts will remain, the level-shift increase in corporation tax receipts seen in 2015 can be expected to be sustainable over the medium term to 2020.”

The report made several recommendations, including:

  • updating and expanding the scope of Ireland’s transfer pricing regime;
  • ensuring proposed tax measures meet OECD and EU standards on preferential treatment;
  • enhancing Irish Revenue’s resources to deal with international dispute resolution;
  • holding consultations on proposals such as the implementation of Actions 8-10 of the BEPS project; and
  • continuing to support proposals for an EU directive that allows for mandatory disclosure rules as proposed by Action 12 of the BEPS project.

Finance Minister Paschal Donohoe welcomed the emphasis given in the report to the importance of certainty, which he said is core to Ireland’s corporation tax offering. Minister Donohoe noted that he will now set up a consultation process on the report to see how the measures in it can be implemented.

If you would like any further information on the contents of the report, please feel free to contact a member of our Tax Group.

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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