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EU’s Global Minimum Tax Directive will be a significant area of focus for large businesses

The EU directive ensures that large EU groups, wherever headquartered, will now be subject to an effective tax rate of at least 15 per cent on all their profits wherever arising

James Smyth, corporate and international tax partner at Deloitte: it is worth noting that Ireland’s current corporate tax rate of 12.5 per cent remains unchanged after the EU directive. Picture by Fergal Philips

The adoption by EU member states of a global minimum tax directive (EU directive) last December failed to catch public attention, but it was one of the most significant developments in recent times, James Smyth, partner, International Corporate Tax, Deloitte, said.

Broadly, the effect of enacting the EU directive is that large EU groups, wherever headquartered, will now be subject to an effective tax rate of at least 15 per cent on all their profits ...