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Irish foreign direct investment chief plays down Trump tax move, Irish Times reports
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Irish foreign direct investment chief plays down Trump tax move, Irish Times reports
Jan 23, 2025 3:44 AM

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.

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