Transfer Pricing News: Ireland OECD BEPS

Since the start of the OECD’s BEPS project, Ireland has been very supportive of all initiatives. Already in October 2013, the Irish government broadcasted a so-called international tax strategy statement. This document contained Ireland’s objectives and commitments concerning the countering of international corporate tax policy issues.

In October 2013, Ireland emphasised on three topics:

  1. The tax rate: The Irish government is fully committed to keeping the Irish corporation tax rate at 12.5%.
  2. The general tax regime: “playing fair but playing to win”. The Irish government wishes to keep the country competitive where it concerns its overall corporate tax regime in order to obtain mobile foreign direct investments.
  3. Their international reputation: Since the start of the BEPS project, tax regimes throughout the world are being scrutinized by governments and the public alike. Therefore, the Irish government acknowledges that the international reputation of their country is also key in obtaining mobile foreign direct investments.

On 27 May 2014, the Irish Minister of Finance opened a consultation process concerning the OECD base erosion and profit shifting (BEPS) actions. This consultation process formed the preparations for the 2015 Budget. The Irish governments’ long term goal is to increase Ireland’s competitiveness and guarantee its international reputation. Since these goals will probably only be reached through a reform of the Irish tax system, the Irish government deemed a public consultation process necessary. The consultation process focussed on the OECD BEPS Action Plan, in particular, the actions that are to be completed in 2014.
The consultation process ended on 22 July 2014, after which the input is used to create the 2015 Budget. 


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