Editing Corporate haven (section)

===Departure of U.S. and EU===

The 2017-18 U.S. and EU Commission taxation initiatives, deliberately depart from the [[Base erosion and profit shifting (OECD project)|OECD BEPS Project]], and have their own explicit anti-IP BEPS tax regimes (as opposed to waiting for the OECD).  The U.S. GILTI and BEAT tax regimes are targeted at U.S. multinationals in Ireland,<ref name="carrot"/><ref>{{cite news|url=https://www.irishtimes.com/business/economy/trump-s-us-tax-reform-a-significant-challenge-for-ireland-1.3310866|title=Trump's US tax reform a significant challenge for Ireland|newspaper=The Irish Times|date=30 November 2017|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180625213509/https://www.irishtimes.com/business/economy/trump-s-us-tax-reform-a-significant-challenge-for-ireland-1.3310866|archive-date=25 June 2018|url-status=live|df=dmy-all}}</ref><ref name="Irish Times"/> while the EU's Digital Services Tax is also directed at perceived abuses by Ireland of the EU's transfer pricing systems (particularly in regard to IP-based [[royalty payment]] charges).<ref name="gnx2"/><ref>{{cite news |url=https://www.independent.ie/business/brexit/shakeup-of-eu-tax-rules-a-more-serious-threat-to-ireland-than-brexit-36130545.html |title=Shake-up of EU tax rules a 'more serious threat' to Ireland than Brexit |newspaper=Irish Independent |date=14 September 2017 |access-date=13 May 2018 |archive-url=https://web.archive.org/web/20180612141253/https://www.independent.ie/business/brexit/shakeup-of-eu-tax-rules-a-more-serious-threat-to-ireland-than-brexit-36130545.html |archive-date=12 June 2018 |url-status=live |df=dmy-all }}</ref><ref>{{cite news|url=https://www.irishtimes.com/business/economy/why-ireland-faces-a-fight-on-the-corporate-tax-front-1.3426080|title=Why Ireland faces a fight on the corporate tax front|newspaper=The Irish Times|date=14 March 2018|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180402230923/https://www.irishtimes.com/business/economy/why-ireland-faces-a-fight-on-the-corporate-tax-front-1.3426080|archive-date=2 April 2018|url-status=live|df=dmy-all}}</ref>

For example, the new U.S. GILTI regime forces U.S. multinationals in Ireland to pay an effective corporate tax rate of over 12%, even with a full Irish IP BEPS tool (i.e. "single malt", whose effective Irish tax rate is circa 0%).  If they pay full Irish "headline" 12.5% corporate tax rate, the effective corporate tax rate rises to over 14%.  This is compared to a new U.S. FDII tax regime of 13.125% for U.S.-based IP, which reduces to circa 12% after the higher U.S. tax relief.<ref name="example">{{cite web|url=https://www.scribd.com/document/379498913/Double-Irish-vs-Single-Irish-Post-the-Tax-Cuts-and-Jobs-Act-GILTI-leglislation|title=Reassessing the Beloved Double Irish Structure (as Single Malt) in Light of GILTI|publisher=Taxnotes|date=23 April 2018|access-date=17 May 2018|archive-url=https://web.archive.org/web/20190326121702/https://www.scribd.com/document/379498913/Double-Irish-vs-Single-Irish-Post-the-Tax-Cuts-and-Jobs-Act-GILTI-leglislation|archive-date=26 March 2019|url-status=live|df=dmy-all}}</ref>

U.S. multinationals like Pfizer announced in Q1 2018, a post-TCJA global tax rate for 2019 of circa 17%, which is very similar to the circa 16% expected by past U.S. multinational Irish [[tax inversion]]s, Eaton, Allergan, and Medtronic.  This is the effect of Pfizer being able to use the new U.S. 13.125% FDII regime, as well as the new U.S. BEAT regime penalising non-U.S. multinationals (and past tax inversions) by taxing income leaving the U.S. to go to low-tax [[corporate tax haven]]s like Ireland.<ref name="example2">{{cite web|url=https://www.scribd.com/document/379507225/TCJA-US-Multinationals-Winners-and-Losers|title=U.S. Tax Cuts and Jobs Act: Winners and Losers|page=1235|publisher=Taxnotes|date=19 March 2018|access-date=17 May 2018|archive-url=https://web.archive.org/web/20190415115353/https://www.scribd.com/document/379507225/TCJA-US-Multinationals-Winners-and-Losers|archive-date=15 April 2019|url-status=live|df=dmy-all}}</ref>

{{quote|Now that [U.S.] corporate tax reform has passed, the advantages of being an inverted company are less obvious|source=Jami Rubin, [[Goldman Sachs]], March 2018,<ref name="example2"/>}}

Other jurisdictions, such as Japan, are also realising the extent to which IP-based BEPS tools are being used to manage global corporate taxes.<ref name="tokyo">{{cite web|url=https://asia.nikkei.com/Economy/Tokyo-targets-tax-avoidance-on-intellectual-property|title=Tokyo targets tax avoidance on intellectual property|publisher=Nikkei Asian Review|date=10 March 2017|access-date=18 May 2018|archive-url=https://web.archive.org/web/20180518200542/https://asia.nikkei.com/Economy/Tokyo-targets-tax-avoidance-on-intellectual-property|archive-date=18 May 2018|url-status=dead|df=dmy-all}}</ref>