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Ireland Closes Tax Haven Loophole
20 Jul
Summary
- Ireland to close the 'Double Irish' tax loophole by 2020.
- US tech giants like Apple and Google used the loophole to shelter profits.
- Ireland's 12.5% corporate tax rate will remain unchanged.
Ireland's government has announced the closure of the widely used 'Double Irish' corporate tax loophole. This controversial tax strategy enabled many US-based tech companies, including Apple, Google, and Facebook, to significantly reduce their tax liabilities by sheltering billions of dollars in profits.
The Irish Finance Minister confirmed that the loophole will be closed to new entrants starting next year and completely phased out by 2020. This decision comes amid increasing international pressure and broader efforts to overhaul global tax codes, with Ireland facing scrutiny from the European Union.
Despite the elimination of the 'Double Irish' scheme, Ireland's Finance Minister affirmed that the country's 12.5 percent corporate tax rate, a key factor in attracting major corporations, will not be altered. Companies utilizing the loophole will need to reconfigure their corporate structures to comply with the new regulations.
