Ireland has agreed to join an international agreement that would set a minimum corporate tax rate of 15% across the world.
The country announced Thursday that, after months of negotiations, it would sign on to the plan, which already includes more than 130 countries. The agreement would raise Ireland’s tax rate from 12.5%. U.S. officials, including Treasury Secretary Janet Yellen, had been lobbying the country to join the pact.
“I do believe that where we are now is balanced and represents a fair compromise, reflecting the interests of the many countries involved,” said Paschal Donohoe, Ireland’s finance minister.
IRELAND MOVES CLOSER TO JOINING GLOBAL MINIMUM CORPORATE TAX PLAN
Previous language in the agreement had specified that the rate would be set at “at least 15%.” A key concession that the Irish negotiated was to drop the “at least” from the agreement’s terms. The United States was seeking a higher rate, but Ireland has managed to rein those ambitions in with its signing of the treaty.
Ireland is one of just seven of the 139 Organization for Economic Cooperation and Development countries that are part of the global minimum tax negotiations. Only six countries (Estonia, Hungary, Kenya, Sri Lanka, Barbados, and Nigeria) are now holdouts on the global minimum plan.
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Ireland’s support, like that of Estonia and Hungary, is paramount to implementing the new regime because all European Union members have to agree to tax reform proposals.
The OECD is set to meet on Friday.
