22/01/21

IRELAND: Jurisdiction updates corporate tax roadmap.

As published on transferpricingnews.com, Friday 22 January, 2021.

Ireland’s Finance Minister, Paschal Donohoe, has published the January 2021 Update to the country’s corporate tax roadmap outlining key international tax reform actions that Ireland will take over the coming years.

According to the update, Ireland will seek to implement interest limitation rules in accordance with the Anti-Tax Avoidance Directive (ATAD) standard; legislate for new international tax transparency rules for digital platforms; legislate for reverse hybrids aspect of ATAD anti-hybrid rules; adopt the authorised OECD approach for transfer pricing of branches; and consider actions that may be needed in respect of outbound payments from Ireland and our wider withholding tax regime.

Finance Minister Donohoe said: “I am delighted to publish this Update which sets out a direction of travel for corporation tax reform over the coming years. The Update highlights the significant actions that Ireland has taken and the actions we will continue to take to ensure that our corporation tax regime is competitive, fair, and sustainable.”

“It is vital to have a consensus-based, globally agreed approach to international tax. Tax rules need to continue to evolve to match the modern world, and that evolution can best take place through international agreement at appropriate institutions such as the OECD. Ireland will continue to foster economic activity in Ireland, the EU and beyond by adapting and evolving our corporate tax regime while maintaining our key 12.5 percent rate. This Update to the Roadmap demonstrates the Government’s commitment to continuing the significant progress already made to strengthen and modernise Ireland’s corporation tax system now and, in the years to come.”