9 pre-year-end personal tax tips
As we approach the end of 2021, we have outlined some pre-year-end personal tax tips which one should bear in mind, including tax refunds, pension contributions, exemptions etc.
OECD minimum tax rate
On 8 October 2021, the OECD announced that a total of 136 countries, among which Ireland, had reached a political agreement on a minimum effective rate of 15% for businesses.
The introduction of this minimum corporation tax rate of 15% has not been finalised at OECD level. Consequently, there is no reference to it in Ireland’s recently published 2021 Finance Bill. The new minimum rate is likely to be only implemented in 2023 at the earliest.
Prior to agreeing, Ireland sought reinsurance from the OECD on two key aspects:
This new 15% corporation rate is expected to only impact around 1,500 businesses in Ireland, mostly foreign-owned groups. Businesses with global turnovers of less than €750 million will be outside the scope of the new rules, and as a result, the 12.5% corporation tax rate will continue to apply to them.
Ireland‘s active participation in the tax reform provides investors with the certainty of their tax position. The country’s attractiveness as an investment location remains, thanks to other key elements of the country’s corporate tax regime, such as the R&D tax credit system and the new Digital Gaming tax credit, as well as non-tax aspects such as education, skills, research, housing, and other economic infrastructure.
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