Tax
Participation exemption to corporate tax would further state’s ‘business-friendly’ reputation
Department of Finance released a ‘strawman proposal’ examining reform of the taxation of multinational dividends
Reforming the taxation of dividends paid out to shareholders of multinational firms would help maintain Ireland’s reputation as “business-friendly destination”, Michael McGrath has said, as his department inches closer to a seismic shift in the corporate tax system.
On Friday, the minister for finance released a “strawman proposal” that lays out a hypothetical example for how a so-called “participation exemption” may apply, and invites further feedback.
The proposal aims to deal with long-standing controversial tax rules for foreign businesses operating here, which means shareholders are double taxed on any dividends received.
