The Corporate Tax Conundrum: Why the OECD negotiations are crucial for Ireland

Negotiations at the OECD to agree a global framework to govern the taxation of company profits have been gathering pace in recent months, with an agreement reached between the G7 countries at the G7 meeting on Saturday, 5 June 2021.  

This discussion can be divided into two strands or pillars. Pillar One of the OECD’s proposal addresses how the tax base should be determined and Pillar Two deals with the imposition of a global minimum effective rate of corporate tax.  

But what exactly is being discussed and what will it mean for the corporate tax landscape in Ireland in the long-term?  

This paper attempts to analyse the current state of play of the OECD/G20 Inclusive Framework on base erosion and profit shifting, (BEPS), assess its possible future direction of travel, and discuss what it will mean both for Ireland and the rest of the world.