The Impact of the Global Tax Reforms on Ireland’s Foreign Direct Investment and the Wider Economy

This research funded by the Department of Finance will examine the impact of the proposed changes to the international tax system (Pillar One and Pillar Two) on foreign direct investment and the wider economy in Ireland. The proposed research will address the following questions:

• How would the proposed tax changes affect the location choice of multinationals and the attractiveness of Ireland to foreign direct investment?
• How sensitive would Ireland’s foreign direct investment be to the proposed tax changes?
• What economic impacts will the proposed tax changes have in the medium and long-term on productivity and employment?

This evidence will assist the Department of Finance to assess the medium and long-term impact of the proposed global tax reforms on Ireland’s foreign direct investment and the wider economy.