The Irish Central Bank has cautioned that changes in US tax policy could reduce corporate tax revenues from American companies operating in Ireland. In its quarterly bulletin, the bank noted that these firms contribute a substantial portion of Ireland’s tax income, benefiting from favorable operational costs and transfer pricing arrangements.
With President-elect Donald Trump’s proposed tariffs and tax reforms on the horizon, the central bank warned that such measures could swing Ireland’s government finances into a deficit, highlighting the country’s vulnerability to US economic policies.
“In the near-term, the most immediate effect of a changed corporation tax regime in the US could be a significantly more negative outlook for the public finances in Ireland,” the Central Bank said.
