Donald Trump: 'I hear Ireland is reducing Corporation Tax to 8%'; Department says no

Donald Trump has said he has heard that Ireland is about to reduce its Corporation Tax rate to 8% from its current 12.5%.

In unscheduled remarks to members of the press, the US president said it was imperative the US cuts its own rate of 35%, in order to compete with countries including Ireland.

He said: "You look at other countries and what they've done, and we're competing with other countries…China is at 15% (and) I hear that Ireland is going to be reducing their corporate rates down to 8% from 12%.

"You have other countries also reducing. We can't (in the US) be at 35% and think we're going to remain competitive in terms of companies and jobs."

However, a spokesman for the Department of Finance said the remarks were not correct.

"No. I refer you to the Minister's Budget speech in which he said specifically that there would be no change to Ireland's Corporation Tax rate of 12.5%," he said.

In his Budget 2018 speech last Tuesday, Minister for Finance Paschal Donohoe said: "Our position is clear. The 12.5% tax rate is, and will remain, a core part of our offering."

Mr Trump did not provide a source for his claim, which was made as part of a series of remarks on a number of topics including a forthcoming tax plan, the appointment of judges to all levels of the US judicial system, and the US reponse to recent natural disasters in its territories, including in Puerto Rico.


By Jill O'Sullivan

Most Read in Business

World Markets