Issued 13 October, 2020.
Speaking in response to Budget 2021, The American Chamber of Commerce Ireland welcomed that there will be no additional tax on job creation through changes to income tax bands or credits in Budget 2021.
The American Chamber welcomed the reaffirmation of Ireland’s 12.5% corporation tax rate and notes an update will be published to Ireland's Corporate Tax Roadmap with further steps for reform to be outlined in the context of the OECD BEPS project.
Mark Redmond said:
We welcome the emphasis on saving jobs, the €3.4 billion recovery fund, provided to account for further challenges anticipated by the Covid crisis, and that total exchequer investment for capital will be over €10 billion in 2021. This will address Ireland’s significant infrastructure and physical connectivity requirements, funding for the higher and secondary education system and the National Broadband Plan. The American Chamber welcomes the €5 billion provided to alleviate the ongoing housing crisis. It is also positive and important to see the emphasis on digital upskilling, climate transition measures and funding for Programme for Government projects. These measures will enhance Ireland’s ability to compete for additional FDI.
Overall, by addressing these barriers - many highlighted by AmCham in its pre-Budget submission, we believe Budget 2021 will ensure Ireland remains globally competitive.
However, the American Chamber notes the decision on amending legislation to provide that intangible assets acquired from midnight tonight will be within the scope of balancing charge rules. The American Chamber is consulting with members on the implications of this change.