12th Oct 2010: AmCham Welcomes Minister Lenhian's Corporation Tax Guarantee
American Chamber of Commerce Welcomes Minister Lenhian's Corporation Tax Guarantee
Tuesday 12th October 2010: The American Chamber of Commerce in Ireland has welcomed the Minister for Finance's statement that Ireland's 12.5% corporation tax rate would remain intact and was "a cornerstone of our industrial investment strategy" during an interview on Bloomberg television in New York yesterday.
In response to Minister Lenihan's comments Joanne Richardson, Chief Executive of the American Chamber of Commerce in Ireland said, "Ireland's corporation tax is critical to the success of all Irish businesses, not just those operating in the multinational sector, and has led to significant employment across all sectors. Minister Lenihan's categorical statement that there will be no increase to the rate has provided a much needed definitive answer to the comments made by various EU officials and Commissioners."
"Ireland's competitive tax regime and favorable corporation tax rate remains one of our greatest attractions for new and existing investment. If Ireland isn't a compelling location for companies to conduct their business here, they will locate elsewhere and the benefits that accrue in terms of employment, the contribution to Ireland's tax take and the development of innovation will be lost."
Ms. Richardson continued, "The attempts of certain members of the European Commission and Parliament to force the Irish government's hand must be strongly opposed. Ireland's tax policy remains a sovereign issue and Minister Lenihan must continue to reinforce his positive message on maintaining Ireland's 12.5% corporation tax rate at every opportunity with the Irish and international business communities. "
For reference; Laurie Mannix, MKC Communications, 086 8143710
About the American Chamber of Commerce in Ireland
Today, almost 100,000 people are directly employed[i] in over 600 US firms in Ireland[ii] accounting for 70% of all IDA supported employment[iii].. The IDA announced 125 new and expansion projects with companies during 2009[v]. Almost two out of every three foreign direct investment projects coming to Ireland in 2008 have originated from the US. In 2008, US firms paid over €3b to the Irish Exchequer Taxes such as Corporation Tax, VAT, and Payroll taxes (or approx 40% of total corporate tax take in 2008[vi]) and contributed a further €15b in expenditure to the Irish economy in terms of payrolls, goods and services employed in their operations[vii].
[i] Source: IDA Jan 2009 from a Forfas Employment Survey, plus an estimated 6,000 working in non-grant aided US businesses in Ireland. [ii] American Chamber Database [iii] IDA Annual Report 2008 [iv] American Chamber Estimate
[v] From IDA Press office based on the IDA's Annual Report [vi] Amcham estimate based on IDA End of Year Statement 2008, issued Jan 2009 at 85% of total. [vii]. Based on the 2008 Annual Business Survey of Economic Impact, and an American Chamber estimate of approximately 80% of total agency assisted firms being of US origin.