Press release
Minister Donohoe Launches Public Consultation on a Territorial System of Taxation
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Published on
Last updated on
Minister Donohoe today (Wednesday) launched a public consultation seeking stakeholder views on a possible move to a Territorial System of Taxation.
The Update to Irelands Corporation Tax Roadmap, published in January 2021, set out a series of commitments designed to update and enhance Ireland’s corporation tax rules. This public consultation delivers on the following commitment;
The consultation builds on the work of the 2017 Review of Ireland’s Corporation Tax Code by Seamus Coffey, ‘the Coffey Report’ and the subsequent public consultation on the recommendations of the report held in 2018.
Furthermore, the recent OECD Inclusive Framework agreement to address the tax challenges arising from digitalisation of the economy will introduce significant changes to the international tax framework, making this an appropriate time to consider the wider tax system in Ireland.
The purpose of this consultation is to seek broad direction from stakeholders which will inform potential further consultation on this matter in the future. It is mainly intended as a scoping exercise seeking to identify the benefits, costs, opportunities and risks of such a move.
Launching the Consultation, Minister Donohoe said;
“Today I am fulfilling my commitment to launch a public consultation on a Territorial Tax Regime which was included in the January 2021 Update to Ireland’s Corporation Tax Roadmap. The recent historic Agreement at OECD on changes to address tax challenges arising from digitalisation makes this an appropriate time to consider the strategic direction of Ireland’s tax policy by considering the merits of moving to a territorial system of taxation. I would encourage all interested parties to engage with this opportunity to contribute to Ireland’s tax policy to ensure that it continues to encourage and support job creation and investment”.
The public and interested stakeholders are now invited to give their views on the issues detailed in the public consultation document. It is anticipated that stakeholders’ valuable insight will inform the development of further research and public consultation in the future.
The consultation period will run from today, 22 December 2021 to 07 March 2022. Any submissions received after this date may not be considered.