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Biden tax changes could be significant for Ireland


A US plan to change how global companies are taxed could have "very meaningful and significant effects" in Ireland, the country's finance minister has said.

The Biden administration is proposing a global minimum corporation tax rate.

That could undermine Ireland's 12.5% corporation tax rate as a way to attract investment.

Pascal Donohoe said he did not believe Ireland was being specifically targeted by the US.

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In an interview with Irish broadcaster RTÉ, Mr Donohoe said: "I've been saying this moment has been coming for years, it's now happening, and it will have consequences.

"It could have a very meaningful effect, and significant effect, on how we conduct corporate tax policy in Ireland.

"It has the potential to have a very big impact on where tax is collected."

Level playing field

The US Treasury Secretary Janet Yellen has suggested a 21% minimum global corporation tax rate.

"We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom," she said in a speech earlier this month.

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