In a positive signal to international business, the Irish Government announced today as part of its 2015 budget, that the favorable 12.5% corporation tax will remain for a minimum further three years. The Irish Minister of Finance Michael Noonan said that the tax rate that has encouraged so much inward investment in Ireland will "never be up for discussion".
City Trust CEO Danny Cox says; "This is excellent news for our clients with businesses in Ireland, and for those seeking to set up entities here, whether they are large or small. We all know there are many benefits to setting up in Ireland, whether its due to the educated workforce, the infrastructure, location in Europe, or legal regime, but the tax benefits have been a significant encouragement to companies, and we're glad the Government has chosen to extend them."
Our Top Five Takeaways from today's budget:
1. 12.5% tax rate extended for another three years minimum. According to the minister that rate will 'never be up for discussion'.
2. Export incentives for small & medium sized enterprises. The countries eligible for foreign earnings deduction widened
3. Top rate of income tax will be reduced from 42% to 40%.
4. EUR 1.6 billion further investment in job training
5. EUR 8.3 billion to be invested in education
The Minister also pointed out that we are well "ahead of our planned fiscal targets and we have managed to achieve this progress with less tax increases and fewer expenditure cuts than envisaged in 2011."