January 23, 2025 ☼ Zettelkasten ☼ Automated Post
Screenshot of Ireland on alert as Trump pulls US out of global tax deal – The Irish Times
Donald Trump’s decision to pull the US out of a global corporate tax deal poses a new threat to Ireland’s income from American multinationals operating in the country. The tax pact, agreed upon by the Organisation for Economic Co-operation and Development (OECD) last year, allows for other countries to levy top-up taxes on US multinationals. By withdrawing, Trump has potentially set up a stand-off between his administration and the European Union. This move is seen as an attempt to rewrite global tax regimes to favour US companies. The Irish Exchequer earned over €39 billion in corporation tax in the previous year, making it a vital source of income for the state.
Ireland had signed up to the OECD tax deal in 2021, agreeing to shift from its 12.5% corporate tax rate to align with the global minimum of 15%. This, alongside its housing of many US multinational regional headquarters, puts Ireland in a precarious position. The Department of Finance in Ireland is currently examining Trump’s memorandum on the global tax deal. Trump has also suggested creating a list of protective measures within 60 days, putting countries on notice for potential challenges to global tax rules. EU officials in Brussels and Irish officials in Dublin are bracing themselves for potential tariffs on imports from Europe, a promise often made by Trump on his campaign trail.
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