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Finance Minister Michael McGrath. Photo: Niall Carson/PA
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John Downing Twitter
Finance Minister Michael McGrath has confirmed he will bring a memo to Cabinet next week to introduce a new 15pc company tax rate for large multinational firms, with a turnover in excess of €750m, operating in the State.
This is in line with the October 2021 deal, involving 120 countries in the developed world organisation, OECD.
Speaking on RTÉ Radio One’s This Week programme, he said there were two key elements of the agreement. One involved the 15pc rate for big multinationals, likely to kick in next January 1, while the other element was about where the tax was applied and collected.
He said the second element would take longer to be applied and was subject to ongoing talks also involving Ireland.
Overall, he suggested that the deal on “reallocation of taxing rights” may not diminish tax revenues – but could slow down the rate of increase of corporate tax income coming to Ireland.
Separately he said that councils will get enough funds to help anyone who loses their home due to the end of eviction ban.
Mr McGrath also said a new law obliging landlords to give first refusal to tenants wanting to buy their rented home will be in place “within a number of weeks”. But he refused to be more specific about the actual timeframe.
He said the new draft law which will legally require a landlord to first offer a home they are selling to the tenant in situ for purchase is under preparation. He said the Attorney General and parliamentary lawyers were working on the draft with officials from the Housing Department.
Defending the ending of the eviction ban, Mr McGrath said there would be a “meaningful package of measures” brought forward in the autumn Budget. These would aim to keep landlords in the rental market, and would include a “taxation element”.
The Cork South Central Fianna Fáil TD said the “overwhelming majority” of landlords treat their tenants well. He had already come across cases where landlords were selling their property to a tenant on “a voluntary basis on market value terms”.
Mr McGrath said people who fear homelessness must engage directly with their local authority and that the cost rental arrangement, which provides for the purchase of a property by a council for tenants in those circumstances was now available.
For landlord tax incentives he was already actively engaging with Finance Department officials and also discussed the matter with the Revenue Commissioners.
“Any taxation changes in respect of the property market have to be very carefully balanced and require considerable amount of attention to detail,” he said.
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