Press Release 14 Oct 2014

DUBLIN - 1520hrs – OCTOBER 14

IDA Ireland, the foreign investment agency of the Irish Government, today welcomed enhancements to Ireland’s offering to global companies, which will position the country to sustain and win inward investment in the years ahead.

With employment at overseas companies at a record of over 166,000, today’s Budget measures announced by Minister for Finance, Michael Noonan TD, will further strengthen what Ireland can offer overseas investors.

IDA Ireland, which works closely with over 1,100 firms from around the world, said it was particularly pleased to see the Irish government once again committing itself firmly to retaining Ireland’s attractive 12.5% corporate tax rate, a core pillar of Ireland's competitive offering.

More specifically the IDA particularly welcomed new measures including:

  • A new “best in class” Knowledge Box to be legislated for
  • The R&D tax credit system has been broadened and made more attractive to companies
  • An improved Special Assignee Relief Programme (SARP) will continue to attract key decision makers into Ireland
  • Reduction in the top level of income tax

The IDA also welcomed pro-active changes to Ireland’s tax residency rules which provide clarity for companies operating in Ireland or seeking to invest in Ireland in the future.  This change confirms 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. Ireland's tax regime has been built around having economic substance, in terms of employees, payroll and capital investment.

The changes to the residency rules, which will be introduced from the 1st of January 2015, will not alter the core attribute of Ireland's tax offering, which will remain highly competitive. Transitional arrangements will apply to companies already incorporated in Ireland lasting until December 31st, 2020.

Speaking today the Chief Executive Officer of IDA Ireland, Mr Martin Shanahan said:
“Ireland's credentials as a pro-business, pro-investment location are well known worldwide, and today's changes will further cement those credentials. The Government and Minister for Finance have today added to Ireland's competitive offering in the international marketplace and IDA intends to market the new offering fully in the period ahead. Stability has characterised Ireland’s taxation regime over many decades. The roadmap announced today provides certainty to companies operating in Ireland, or seeking to invest in Ireland, for years to come.  In providing this clarity, against the backdrop of ongoing international initiatives, we are confident today's changes will help to grow Ireland's investment pipeline further and boost job creation''.

An infographic on the scale and composition of Ireland's investments is available here

For further information contact:
Emmet Oliver/Kevin Sammon
IDA Communications Division:
00353-1-6034333/ 00353-87-6188564

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