Last Tuesday's Budget certainly was a tough one for the Irish public
Last Tuesday's Budget certainly was a tough one for the Irish public.
However, in recognition of the increasingly important role that inward investment plays in the Irish economy, attracted largely by our 12.5% rate of corporation tax our Finance Minister sent out a clear message to those applying pressure for an increase when he said;
"I want to emphasise that this rate of tax is not for changing upwards and it will continue to be a central part of Ireland's economic brand"
The Minister for Finance also announced that the Government are currently examining how they may introduce tax incentive options for intellectual property. This is a welcome development.
There was further good news for new companies starting up as he unveiled proposals for a 3-year tax holiday, which will apply to companies that commence trading in 2009. The exemption applies, provided a company's tax bill (not profit) in any year does not exceed €40,000 i.e. a profit of €320,000!!! A review to ensure that the measure is in compliance with EU State Aid rules is however required before its formal introduction. Further details on the measure will be contained in the Finance Bill, which is expected in December.
All of which make Ireland even more attractive for international businesses to establish a presence here.
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