KEY POINTS:

• Ireland’s headline 12.5% corporate tax rate — much lower than most industrialized nations — has been key to attracting many multinationals to the country.
• Corporate tax receipts have helped offset some of the coronavirus-fueled challenges for Ireland’s economy, as shown in the budget.
• The tax rate and Ireland’s taxation regime for multinationals has also drawn much criticism, typified by the infamous Apple tax case.

When Irish Finance Minister Paschal Donohoe delivered his bumper budget speech last month he was clear once again that the country’s corporate tax rate would remain as is.

But there was an acknowledgment that “change is inevitable” on an international level, referring to OECD negotiations, and that Ireland would feel the impact of that.

“Agreement at the OECD level would present challenges for Ireland as changes to the international tax framework would see a reduction in the level of profits taxable here,” he said.

“Failure to reach agreement at the OECD would also have negative consequences for the exchequer.”...