DUBLIN, Jan 23 (Reuters) - U.S. President Donald Trump's
decision to effectively pull out of a 2021 global corporate
minimum tax deal does not pose a "significant threat" to
Ireland, the head of the Irish foreign direct investment agency
was quoted as saying on Thursday.
Ireland is hugely reliant on the taxes and jobs from a
cluster of U.S. tech and pharmaceutical multinationals and
played a key role in the 2021 deal signed by nearly 140
countries in a bid to retain its attractiveness as a hub for
foreign investment.
Trump on Monday declared that the deal "has no force or
effect" in the U.S and ordered officials to prepare options for
"protective measures" against countries that have - or are
likely to - put in place tax rules that disproportionately
affect American companies.
As so many U.S. firms book large profits and pay a lot of
their corporate tax in Ireland, Trump's move could have
implications for Dublin as a clause in the deal would oblige it
from next year to collect a "top-up" tax from any of those U.S.
companies that declare a tax rate below the 15% global minimum.
However the head of IDA Ireland, the state-run agency that
works closely with some of the world's largest multinationals,
said the U.S. move would instead "require a revision" of the tax
deal negotiated at the Organization for Economic Cooperation and
Development (OECD).
"Trump's order is undoubtedly going to lead to further
negotiations on international tax and over the course of the
next year we're going to see that intensify," IDA Ireland Chief
Executive Michael Lohan told the Irish Times in an interview at
the World Economic Forum in Davos.
"I do think we're going to see agreement on this because
ultimately companies need to trade internationally... and a
fundamental component of that is tax certainty."
Lohan said he therefore did not believe the U.S. withdrawal
poses a "significant threat to Ireland", the newspaper added.