Kathy Masterson
NEW corporate tax measures introduced in last week’s budget will make Ireland and the Limerick region “an even more attractive location for Foreign Direct Investment (FDI) in the future”, according to president of the American Chamber of Commerce Ireland, Louise Phelan.
“Certainty is of paramount importance to job creators and Minister Noonan, by announcing a new corporate tax roadmap, has ensured that Ireland will retain investor confidence,” she said following the Budget announcement.
The Chamber’s comments will prove reassuring for the Mid West, which has the highest concentration of FDI companies in Ireland outside of Dublin, with about 70 major multinationals employing some 13,000 people in the region.
Among the corporate tax changes announced by Minister Michael Noonan was the end of the controversial ‘Double Irish’ loophole, which allowed multinational companies to move millions in profits offshore virtually tax-free. The new laws will take effect from next January for new companies, but existing companies already operating under the system will be able to avail of a transition period until the end of 2020.
“This change will not bring an end to international tax planning; that requires coordinated action by all countries. By taking action now and making this change as part of a broader reform of our corporate tax system, we are giving certainty to investors about corporate tax in Ireland for the next decade,” Mr Noonan said.
He also announced plans for a “knowledge development box”, or patent box, which would offer major tax incentives for companies to develop new products or technology in Ireland. He said that he will be launching a public consultation process to gather views on how it should operate.
“This intellectual property offering will be a key element in attracting future foreign direct investment to Ireland,” added Minister Noonan.
“These measures will enhance Ireland’s corporate tax regime and align it with best practice internationally. It will ensure that Ireland continues to be the home of the best and most successful companies in the world. It will attract and retain companies with real substance offering real jobs.”
