Ireland joins OECD tax agreement, ends status as tax haven for multinationals

Ireland on Thursday announced that it signed on to an Organization for Economic Cooperation and Development agreement that brings an end to the country's low-tax policy, an incentive that lured multinational companies like Apple and Google to set up headquarters on its shores.

By joining the OECD agreement, Ireland is ditching its longstanding 12.5% tax rate to comply with a minimum effective corporation rate of 15% for multinationals with global revenues that exceed 750 million euros (about $867 million) annually. The country's cabinet agreed to the deal ahead of a wider OECD announcement scheduled for Friday, reports The Guardian.Ireland was among nine countries to staunchly refuse the OECD pact and in June pushed for compromise on the proposed global tax rate. At the time, the G7 agreed to make sweeping changes to international tax law, including closing off tax loopholes used by companies like Apple.

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