On July 27, 2023 the Irish Government launched a second public consultation on the transposition of the EU Minimum Tax Directive (the Pillar Two Directive). In this respect it launched a Feedback Statement. The consultation period will run to close of business on August 21, 2023.

The Feedback Statement released on July 27, 2023 builds on the March 2023 Feedback Statement and on the public consultation carried out in 2022. The draft legislative approaches in the sections of the Feedback Statement contain cross references to the draft legislative approach contained in the March Feedback Statement and therefore should be read in conjunction with the Feedback Statement that was released by the Irish Department of Finance on March 31, 2023 and which can be found here.

The Irish Government invites interested parties to give their views on some remaining key provisions of the Pillar Two GloBE rules required to be implemented domestically. These were not included in the previous Feedback Statement as they were the subject of ongoing development by the Inclusive Framework. These key provisions include safe harbour provisions which are key building blocks for the functioning of Pillar Two.

Draft legislative approaches to further elements of the GloBE rules are contained in the Feedback Statement, together with further consultation questions on a range of technical and policy issues. It is intended that this will allow the draft legislative approaches to be tested by stakeholders, to identify any potential uncertainties or unintended consequences to be resolved, and also to inform preparations being made by businesses to enable compliance with the rules when they come into force from December 31, 2023.

The views of stakeholders are important in ensuring that Ireland’s legislation to transpose the Directive will, when introduced, be clearly understood and operable in practice, while also meeting the international standards required.

Interested stakeholders are therefore invited to:

• Give their views on the specific questions set out below, noting that there is no requirement to answer every question.
• Provide numerical examples, where relevant, to illustrate their points.
• Provide details of alternative approaches that they feel might be beneficial (including minor suggestions).
• Where appropriate, estimate any Exchequer cost/yield of their preferred option.
• Provide details of relevant issues not covered in the Feedback Statement.

The contents of the July Feedback Statement are as follows:

• Section 2: Transitional CbCR Safe Harbour
• Section 3: Transitional UTPR Safe Harbour
• Section 4: QDTT/QDMTT and Safe Harbour status
• Section 5: Pillar Two Elections
• Section 6: OECD Model Rules, Commentary, Administrative Guidance
• Section 7: Administration and Globe Information Return (GIR)
  • 7.2  March 2023 Feedback Statement
  • 7.3  Penalties
  • 7.4  Additional provisions to ensure collection
  • 7.5  Transitional simplified reporting

The Feedback Statement as released on July 27, 2023 by the Irish Government can be found here.

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