Barry O’Leary, CEO, IDA Ireland, The President of Ireland, An tUachtaráin, Mary McAleese,
Liam O’Mahony, Chairman, IDA Ireland
Global Business Services
IDA Ireland has also facilitated the creation of best
practice “Business Service Centres” (BSCs). These
centres provide international companies with a base
from which they can be confident that their Irish
operation will have the ability to adapt and innovate
with changing business needs.
One of the key advantages for an international
company in working with a BSC is that it can devise
a “Global Earnings Mobility Strategy” (GEMS)
with regard to its tax affairs.
Many companies locate the principal business entity
in Ireland to avail of the 12.5% corporate tax rate,
with the BSC alongside to coordinate supply chain
management and handle international relationships,
for maximum synergy.
In this way Ireland has become recognised
internationally as a proven location for companies to
maximise the higher elements of the business value
chain .
Corporation Tax in Ireland
• 12.5% corporate tax rate
•
one of the lowest ‘onshore’ statutory corporate
tax rates in the world
•
not an incentive regime – it is Ireland’s standard
tax rate applicable to ‘trading income’ from any
sector
•
an attractive holding company regime,
including participation exemption from capital
gains tax on disposals of shares in subsidiaries
•
an effective zero tax on foreign dividends
(12.5% tax rate on qualifying foreign dividends,
with flexible onshore pooling of foreign
tax credits)
•
Double-taxation agreements with 51 countries
Key FDI Impacts on the
Irish Economy
•
€110 billion exports
•
240,000 jobs in total
•
50% of corporation tax
•
€19 billion in expenditure
•
€7 billion in payroll
•
73% of business RD&I expenditure
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