ARTICLE · 17 FEBRUARY 2023

Tax Credits A Significant 'pull Factor' For Multinationals Operating In Ireland

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2022 was another year when major changes affecting global tax rules were agreed and as a result the tax landscape in Ireland is likely to undergo a material overhaul from 1 January 2024.

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Mark O'Sullivan

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2022 was another year when major changes affecting global tax rules were agreed and as a result the tax landscape in Ireland is likely to undergo a material overhaul from 1 January 2024. The introduction of the new global minimum tax proposed by the OECD has been well heralded and most readers will be familiar with the proposed move to a minimum 15% rate of tax for multinationals over a certain size (€750m in annual revenues). The EU has finally reached an agreement on the implementation of the OECD's minimum tax, following some resistance from Hungary and Poland. As the standard rate of tax for trading income in Ireland is currently 12.5%, this change will impact most of the large multinationals operating in Ireland and will likely require many of them to pay a top-up tax to ensure that their effective rate of tax in Ireland is at least 15%.

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