Lack of detail makes it too early to fully assess the impact, but the changes could cause revenue to fall and FDI inflows to slow,' it said. 'The Irish economy’s reliance on corporate income tax revenue from a few foreign-owned exposes the sovereign to proposed changes to the global corporate tax framework. However, Fitch said it was too early to say what effects the Irish economy will see from the new global tax accord. In a new report on Thursday, Fitch Ratings highlighted the key role multinationals played in Ireland's 'remarkable economic performance' during the Covid-19 crisis, in providing a huge number of jobs and enormous tax receipts for the Government. A handful of multinationals such as Apple, Pfizer, and Google account for the vast bulk of the almost €12bn the Government raised last year in corporate taxes.

The Department of Finance has assessed that the exchequer will lose €2bn in annual revenues it would have otherwise collected from multinationals when the agreement finally comes into force in the coming years.Įxperts have said the accord will mean Ireland will attract fewer foreign direct investment projects in the future from, in particular, US multinationals, which have helped underpin the prosperity of the State over the past three decades.

Fallout 4 long road ahead