In the competitive Foreign Direct Investment (FDI) world and in a post BREXIT and post Apple judgement environment, it is timely that Ireland has issued this International Tax Strategy Update – see link http://www.budget.gov.ie/Budgets/2016/Documents/Update_on_Irelands_International_Tax_Strategy_pub.pdf
As mentioned by the Minister in his Budget speech, Ireland’s commitment to maintain the 12.5% corporation tax rate is confirmed once again. This rate together with a business friendly environment, a transparent tax regime and very competitive tax offering are key factors in continuing Ireland’s very successful FDI record.
Included in this very competitive tax offering are a best in class R&D tax credit regime and a Knowledge Development Box tax scheme, which is first BEPS compliant one in the world. These tax incentives and the 12.5% rate for trading activities ensure that real jobs and substance will continue to be attracted to Ireland. The location of substance is a key factor in the current ever changing International Tax environment, post BEPS and as part of the wider EU reform on tax avoidance.
Ireland has been a proactive player in BEPS implementation, introducing Country by Country reporting, OECD exchange of information requirements in respect of tax rulings and playing an active part in areas such as multilateral instruments (“MLI”) and the Anti-Avoidance Directive.
However, Ireland is challenging the Apple judgement as we need to defend the integrity of our tax regime and our reputation.
Please feel free to contact Declan O’Luanaigh (dol@ormsby-rhodes.ie) to further discuss potential Irish tax opportunities and international tax developments.
