US multinationals told state to simplify ‘cumbersome’ tax system or face losing investment

American Chamber of Commerce said Ireland should change to a territorial system which taxes companies on income derived within its borders and is considered a simpler model for taxing multinationals

Paschal Donohoe, Minister for Finance speaking at the American Chamber of Commerce Ireland Independence Day lunch in July of this year. Picture: Conor McCabe

Ireland must change its method of taxing multinationals or remain at a “competitive disadvantage” when it comes to attracting foreign investment, the government has been told.

The American Chamber of Commerce has told the Department of Finance in a written submission that the country’s method of taxing multinationals is “cumbersome” and means businesses are often hesitant to locate holding companies here.

The chamber, which lobbies on behalf of US multinationals in Ireland, said transitioning to ...