Ireland considers setting up sovereign wealth fund based on multinationals’ tax payments

doble irlandes TC

Intermoney: Interesting news from Ireland is that the government is considering setting up a sovereign wealth fund to channel some of the tax revenues it is receiving from the many multinational companies based in the country. This would be an effort to strengthen public finances in the future, when annual revenues may be less reliable than they are now.

The country has seen a significant increase in tax revenues since the start of the pandemic, with a 30% year-on-year increase in 2021 and another 48% increase in 2022 to a record €22.6 billion. Despite its spending on energy support packages and other measures, the government’s surplus was €8 billion last year, equivalent to 1.6% of GDP.

The creation of such a fund would bring Ireland in line with countries such as Norway, China and Japan that currently have the largest capital-rich sovereign wealth funds.

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