- American Chamber says overall reduction in the personal tax burden announced today will make it easier for business to incentivise productivity and innovation across the economy.
- American Chamber also welcomes changes to the capital gains regime and the introduction of a new tax credit for the self employed, as a strong and innovative enterprise community is increasingly important in attracting overseas investment from multi-national companies
- Government's moves to improve its offering for knowledge intensive industries with the introduction of a Knowledge Development Box represents another welcome step in creating certainty around the country's future international tax strategy
The American Chamber of Commerce Ireland has welcomed the measures introduced in Budget 2016 today to enhance take home pay with changes to the personal tax regime. The organisation who represent 700 US companies in Ireland that employ 140,000 people stated that the reductions in the USC rates will enhance Ireland's competitiveness in the international battle to retain and attract talent.
Mark Redmond, Chief Executive of the American Chamber said "Changes announced to personal tax as part of Budget 2016 improves Ireland's ability to retain and attract those with specialist skills and leadership talent, crucially it also allows companies reward initiative and improved productivity.
"Ireland has been hugely successful in attracting FDI with its high availability of world-class talent , but its competitiveness has been eroded by high levels of personal taxation, and it's good to see what we hope is the start of the reversal of this trend in this year's Budget. This will improve the case for investing in Ireland, as FDI companies will be better able to incentivise productivity and reward innovation among their Irish based workforces."
The American Chamber also welcomed the introduction of a new tax credit and changes to the capital gains tax regime for the self-employed. According to Mark Redmond "this will boost the enterprise, start up and scale-up ecosystem in Ireland, which will play to the increasing trend among MNCs to seek out locations with strong local business ecosystems, and therefore will help Ireland maintain its attractiveness as a global FDI location."
"The certainty provided by the updated International Tax Strategy will be appreciated by companies investing in Ireland. The details announced of Ireland's Knowledge Development Box are a welcome next step in implementing this strategy," Redmond stated. "We believe that the continued enhancement of Ireland's offering to innovative enterprise is critical, to create an environment where we can compete for mobile IP related investment and jobs."
"The announcement of a regional property plan for IDA Ireland to support the regional action plan for jobs is a positive development," according to Mark Redmond. "This plan should enable IDA Ireland to build on their already strong performance and ensure that the very positive benefits of FDI continue to be felt in communities right across the country."
"The American Chamber recognises the international leadership Ireland is taking with the introduction of a country-by-country reporting mechanism to improve transparency and the quality of information being shared between tax authorities. We will continue to work with Government to ensure that the new measures do not place an uncompetitive compliance burden on business investment and employment."
The American Chamber welcomed the Government's reaffirmation of its commitment to the 12.5% corporate tax rate, which has been one of Ireland's strong calling cards for FDI for many years.