Monday 7 June 2010
TAX INCENTIVES FOR BUSINESSES AND FOREIGN DIRECT INVESTMENT
14:38 | 
Posted by
A.D Pottie & Co Ltd |
Despite the fact that Ireland continues to run a large budget deficit, the tax position for corporate, both domestic and foreign, wishing to invest in, or expand activities in Ireland, continues to remain positive. Some of the main incentives worth highlighting are:
- Continuation of 12.5% corporate tax rate on trading activities.
- Continuation of research and development tax credits.
- Exemption from tax for certain start up companies for a three year period.
- Withholding tax exemption on dividends paid to overseas companies with less onerous “paperwork” than heretofore.
- Participation exemption for companies whereby certain sales of trading subsidiaries are exempt from Irish capital gains tax.
From the perspective of the business “owner” or overseas Manager seconded to Ireland, the abolition of the remittance basis in 2006 was a significant obstacle in luring overseas personnel to Ireland, as in many cases it resulted in an increase in these individuals’ personal tax liability. The relief was partially reinstated in 2008 and now Finance Act 2010 has further increased the relief available which will be a welcome development in boosting Ireland’s overall attractiveness as a place in which to locate business.
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