Ireland commits to global minimum corporation tax of 15%
What you need to know
- Ireland is joining the OECD's International Tax agreement.
- It will mean a minimum rate of 15% for corporation tax for big companies.
- That will impact Apple's operation in the country.
Ireland has this week committed to joining the OECD's International Tax agreement, increasing the amount of tax Apple will pay in the country.
In a press release this week the Irish Government stated:
The government says it has agreed with the OECD to fix the rate as a precise 15% rather than a proposed minimum effective rate of "at least 15%". The move will affect 56 Irish multinationals including Apple, however, the rules won't come into effect until at least 2023.
In a statement, Minister Donohoe said: "Joining this agreement is an important decision for the next stage of Ireland's industrial policy - a decision that will ensure that Ireland is part of the solution in respect to the future international tax framework. It is a sensible and pragmatic decision made by Government in Ireland's interests and ultimately a decision which will provide the conditions to provide long term certainty for business and investors to the benefit of the many thousands of employees across Ireland."
In 2020 Apple's pre-tax profits in Cork were $33.8 billion, falling by 19% thanks to a bit increase in R&D spending. The company employes 6,000 people in Cork and has operated there for over 40 years.
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9
By Daryl Baxter