Irish Finance Minister Paschal Donohoe said on Friday he believed countries should work to reach a compromise on a global minimum corporate tax.
“We still have time before a final agreement is reached, so it is difficult for me to say what this compromise could still look like. But I believe that it is in everyone’s interest to find a compromise,” Donohoe said in a interview with CNBC.
The comments are notable as Ireland is seen as an obstacle to the Biden administration’s goal of an agreement between the countries for multinational corporations to pay a tax rate of at least 15% on their income.
The Group of Seven (G-7) of wealthy countries, which does not include Ireland, came out earlier this month in favor of a global minimum tax of at least 15%. A broader group of countries is participating in negotiations on international tax issues through the Organization for Economic Co-operation and Development, and negotiators hope to reach a final agreement later this year.
Ireland, a tax haven for many top companies, has a corporate tax rate of 12.5% and could be penalized by a deal with a higher rate.
Donohoe told CNBC he hopes “a deal can be reached that recognizes the role of legitimate tax competition for small and medium economies.”
He said Dublin would argue for its tariffs but wanted to see “broad agreement”.
During a Senate hearing earlier this week, Treasury Secretary Janet Yellen said she had “very constructive” conversations with Donohoe and believes he will work with the United States on a global minimum tax.” although it is a very important issue for Ireland”.
