Faraway Hills May Not Be Greener; Can Ireland Maintain Its Competitive Advantage With a 15% Minimum Tax?

Abstract

With its attractive 12.5% corporate tax rate, Ireland would seem to be most heavily impacted by the European Union’s decision to adopt the Pillar Two 15% global minimum tax. With implementation looming in 2024, questions have arisen about whether Ireland will be able to maintain its competitive advantage, even with the higher tax rate. In this Talking Points, Anna Crowley examines the steps the Irish government has taken to ward off any ill effects of the rate hike, as it seeks to maintain its position as an attractive location for foreign direct investment.