What you need to know
- Ireland says that it is willing to compromise over the 12.5% tax it charges companies like Apple on their profits.
- This amid a wish from other countries to agree to a 15% tax.
Ireland has told CNBC that it is willing to "engage" with discussions over the 12.5% tax on profits that it charges Apple in the country. It hopes to be able to reach a "compromise" over the 15% that other countries are hoping to agree to.
Ireland has historically used tax incentives to draw companies like Apple and Google to its shores and it's a method that has worked well. But with the United States, UK, and other EU member countries seeking to agree on a standard 15% tax that could leave Ireland without its advantage. And Paschal Donohoe, Ireland's finance minister says it's something that can be discussed according to a Business Insider report.
Paschal Donohoe, Ireland's finance minister, on Friday told CNBC that the country would "engage" in tax-rate negotiations "very intensely.""...and I do hope an agreement can be reached that does recognize the role of legitimate tax competition for smaller and medium-sized economies," Donohoe said.
This all comes as a host of other countries, all part of the G7, agreed to impose a universal 15% tax on profits earned within their borders. The United States in particular argued for the 15% rate, saying that it would be a step towards ending a "race to the bottom" that has lasted decades.
Ireland is something of a hub for Apple including the call centers that power AppleCare. Ireland will be concerned that playing on a level playing field with the likes of the UK, Germany, and others will see Apple's business go elsewhere in the future.
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