Economy

New corporate tax rate has halved Ireland’s competitive advantage for FDI, says OECD

Manal Corwin, head of tax at the OECD, warned that investment hubs like Ireland could see a sharp drop in foreign investment in the coming years

A new working paper on taxation estimates that the new global minimum corporate tax rate of 15 per cent would reduce Ireland’s differential from more than 14 per cent to around 7.5 per cent. Picture: Getty

Ireland’s competitive advantage in attracting foreign investment by having a low corporate tax rate has practically halved since the new global minimum tax came into effect last week, new research by the OECD has found.

A new working paper on taxation by the organisation found that the new global minimum corporate tax rate of 15 per cent would reduce the tax differential between low tax and higher tax countries by an average of 30 per ...