Budget 2012 Shows Foresight
The American Chamber of Commerce Ireland, which represents 600 US companies employing 100,000 people directly in Ireland, has welcomed decisions on the Special Assignment Relief Programme (SARP) announced by Minister Noonan in Budget 2012. "In these difficult economic times it is encouraging that the Department of Finance is showing foresight and introducing initiatives which will aid future job creation", said Anna Scally, Chair of the American Chamber Tax Group. The Chamber also welcomed the Ministers definitive comments on Ireland's corporation tax regime.
According to Scally, proposed changes to the SARP regime will be a major boost to Ireland's ability to compete and win investment. "We need to make Ireland attractive for foreign nationals to relocate here so that the talents and skills we need to expand investment mandates are available to us. These individuals are often key decision makers and key influencers in deciding where new investments are located. In addition individuals that relocate here for periods of time have a greater affinity to Ireland as they move up the corporate ladder, which plays well for us when investment decisions are being taken at board level."
"Minister Noonan has also provided enhanced certainty on the continuation of Ireland's corporate tax regime with a headline rate of 12.5%." Scally stated that "The fiscal success of Ireland's corporate tax policy is clear. Ireland has been hugely successful in recent years in attracting high end Foreign Direct Investment, and , in the processs creating hundreds of thousands of jobs. In the current climate this has been more important than ever. There is intense competition globally for these investments and we have to continually review and assess our offering to ensure Ireland remains ahead of the competition as an investment location.
A note of caution was sounded by the Chamber into the announced increase in Carbon Tax. "Energy costs in Ireland are already significantly out of line with many of our EU counterparts, and therefore any measure which further increases energy prices would have a negative impact on our competitiveness." ENDS