Ireland says it will 'compromise' over the 12.5% tax it charges Apple

What you need to know

  • Ireland says that it is willing to compromise over the 12.5% tax it charges companies like Apple on their profits.
  • This amid a wish from other countries to agree to a 15% tax.

Ireland has historically offered tax cuts to draw companies to its shores.

Ireland has told CNBC that it is willing to "engage" with discussions over the 12.5% tax on profits that it charges Apple in the country. It hopes to be able to reach a "compromise" over the 15% that other countries are hoping to agree to.

Ireland has historically used tax incentives to draw companies like Apple and Google to its shores and it's a method that has worked well. But with the United States, UK, and other EU member countries seeking to agree on a standard 15% tax that could leave Ireland without its advantage. And Paschal Donohoe, Ireland's finance minister says it's something that can be discussed according to a Business Insider report.

Paschal Donohoe, Ireland's finance minister, on Friday told CNBC that the country would "engage" in tax-rate negotiations "very intensely."

"...and I do hope an agreement can be reached that does recognize the role of legitimate tax competition for smaller and medium-sized economies," Donohoe said.

This all comes as a host of other countries, all part of the G7, agreed to impose a universal 15% tax on profits earned within their borders. The United States in particular argued for the 15% rate, saying that it would be a step towards ending a "race to the bottom" that has lasted decades.

Ireland is something of a hub for Apple including the call centers that power AppleCare. Ireland will be concerned that playing on a level playing field with the likes of the UK, Germany, and others will see Apple's business go elsewhere in the future.

Don't forget that we're in the midst of Amazon Prime Day – be sure to check out what's going on so you don't miss a deal!