Global tax changes could hit State’s revenues from next year – Donohoe

State coffers could feel the first impact of a likely €2 billion loss in corporate tax revenues on the back of proposed global changes from next year, according to Paschal Donohoe, Minister for Finance.

The Organisation for Economic Co-operation and Development (OECD) hopes to reach a deal on taxing multinationals, that could result in them paying 15 per cent on profits, by the end of the year.

Mr Donohoe said on Thursday that if a deal were reached, the Republic could begin to see an impact on corporate tax take from next year, rising to around €2 billion by the middle of the decade.

Planning

The Minister confirmed that Government budget planning “included a loss of corporate tax revenues from next year onwards”.

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However, Mr Donohoe stressed that agreement had yet to be reached and said the Republic would continue to argue for legitimate tax competition alongside many other small- and medium-sized OECD members.