Irish tax policies secure increasing inward investment
08 January 2015
Posted by: Author: Jason Gorringe
Author: Jason Gorring (Tax-new.com)
promotion agency, IDA Ireland, has said that changes to the country's
corporation tax rules during 2014 enhanced Ireland's international
competitiveness, as demonstrated by new inward investment statistics.
IDA Ireland reported
the creation of 15,012 new jobs by IDA client companies during 2014. The net
increase in employment was 7,131, one of the highest levels in the past decade.
Total employment in IDA companies now stands at 174,488, the highest level in
the agency's history.
In its new report, the
agency stated that the Budget 2015 changes introduced by Finance Minister
Michael Noonan "position the country to sustain, and win, inward
investment in the years ahead and further strengthen what Ireland can offer
In particular, the IDA
welcomed "pro-active" reforms to Ireland's tax residency rules. As of
January 1, 2015, all new companies that are incorporated in Ireland are
automatically tax resident in Ireland. For existing businesses, the amended
rules will come into effect from 2020.
According to IDA
Ireland, the move provides greater clarity for companies operating in Ireland
or seeking to invest in Ireland for the first time. It has also "confirmed
Ireland's international reputation as a country with a stable, transparent, and
fair taxation regime, by bringing clarity to how Ireland's tax rules interact
with tax regimes present elsewhere."
In addition, the IDA
was pleased with measures to introduce a "best in class" knowledge
development box, broaden the research and development tax credit, and improve
the Special Assignee Relief Programme.
corporate tax proposition is firmly built around having economic substance, in
terms of employees, payroll, and capital investment, and as a result any
changes being considered internationally should benefit Ireland, not threaten
Ireland's current portfolio," the report concluded.
Jobs Minister Richard
Bruton commented: "Foreign direct investment is a central part of our
Action Plan for Jobs. Multinational companies account for almost ten percent of
the Irish workforce and are of crucial strategic importance for the economy due
to the quality of the jobs involved, their export focus, and the massive
knock-on impact they have on the wider economy."
"That is why we
have put in place a range of new measures to support extra jobs in this area
over the past four years, such as extra IDA staff in foreign markets, increased
skilled graduates, and an improved tax offering."
This article first appeared on tax-news.com.