12.5% Tax gone

Probably consequences of paying 350 a week welfare. No one wants to go back to work. I see salary rise in labour market.

The general consensus is that this isn’t a bad deal at all for Ireland and a lot better than the worst possible outcomes envisaged a couple of years ago.

Where do you imagine these 100,000 jobs will go to if nowhere can charge less than Ireland’s 15% rate and all major economies (US, UK, Germany, France, China, Japan etc) are charging more?

I honestly don't see too many, if any MNCs, upping and moving out.

Why would they? To make major relocation costs to other countries with similar tax rate? Where could they all go which would be better financially for them?

So in the end, it might actually bring in more money for us as a state. Time will tell I suppose.

How did we lose 2bn straight away?

Abbot were huge in germany in the 90's paying their sci ser (scientific services) staff €30,000 basic and German corpo rates and getting things going. Then they came to Ireland and paid the sci ser 20k and got the Ida grants and the low figs and paid Irish corpo rates . Little by little they moved stuff here from there.

Can't help but think this will drag, hope it dosen't but I worry it will

Labour costs are not a decisive factor with Big Multinationals.

It's not just the Irish corporation tax rate , its other things they can do like get tax credits for patents , ip transfer rights by having a head office in Ireland, is google going to move to Italy, france etc where taxs are 20 per cent plus , unlikely

The problem i see is what new company will move to Ireland when rents are so high even middle class workers are struggling, and house prices are out of control

I read an article an American ulture fund can buy houses in Ireland rent them out and pay maybe 2 per cent on the rental income by using various taxation credits

Mary Lou will be the one who will have to pick up the pieces in the future . its all a tactic to ensure SF fall at the first hurdle.

We don't, not as a result of the rise in the tax rate.

But there's a second change being made as part of the same deal, under which multinational firms become subject to tax in the countries where they have business activities and earn profits, regardless of whether firms have a physical presence there. So the profits you make by providing services to people in (say) Germany will be partly taxable in Germany, instead of (as up to now) being wholly taxable in whatever jurisdiction you have based your operation in.

This only applies to multinationals which are large (global sales in excess of €20 billion annually) and profitable (profitablity above 10%). But there's quite a few of those established in Ireland who up to now have been booking their profits in Ireland and paying tax here. A share of those profits will now be booked in other countries and we will lose the associated tax revenue. The government has estimated the loss of revenue at about €2 billion.

This has nothing to do with the change in the 12.5% tax rate and would have happened whether or not we agreed to raise that to 15%. There's obviously nothing the Irish government can do to stop the German government taxing profits earned in Germany, if that's what the German government decides to do.