The Irish government has decided to close a corporate tax loophole widely used by US companies, particularly in the technology sector, the Wall Street Journal reported.
Ireland will change its tax code to require all Irish-registered companies to be tax residents in the country within the next six years, Irish Finance Minister Michael Noonan was quoted as saying in a parliamentary address to introduce the 2015 budget.
The move came amid heavy pressure from the European Union and other governments to close the loophole that allows companies such as Google and Facebook to funnel billions of non-US profits to offshore tax havens such as Bermuda and the Cayman Islands, the newspaper said.
The tax loophole, known as “Double Irish”, allows companies to send royalty payments for intellectual property from one Irish-registered subsidiary to another that resides in a country with no corporate income taxes.
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