US: Tax changes will make Ireland more attractive for Foreign Direct Investment
The American Chamber of Commerce has welcomed the Government's announcement on Corporate Tax and Income Tax in Budget 2015.
The new package on corporate tax will eliminate the so-called "double Irish", which allows foreign companies reduce their tax liabilities, for new entrants from January.
However existing schemes will remain in place until 2020.
Mr Noonan said in his announcement in the Dáil chamber: "This proactive change will not bring an end to international tax planning. That requires co-ordinated action by all countries.
"By taking action now and making this change as part of a broader reform of our corporate tax system, we are giving certainty to investors about corporate tax in Ireland for the next decade."
American Chamber of Commerce Ireland said: "Certainty is of paramount importance to job creators and Minister Noonan, by announcing a new Corporate Tax roadmap, has ensured that Ireland will retain investor confidence.
Ms Louise Phelan, President of the American Chamber, said that this certainty would "allow American companies currently considering setting up operations in Ireland and those already here, to plan accordingly".
"This roadmap sends out a very positive and powerful signal that, as the Minister has previously stated, in the global competition for FDI jobs Ireland will play fair but will play to win.
"This plan contains a range major improvements across the key pillars which are central to Ireland’s tax offering - Intellectual Property (IP); the Research and Development Tax Credit Regime; Financial Services and Income Tax."
Ms. Phelan added that the impact on national competitiveness of high marginal rates of personal taxation should not be underestimated and welcomed the decision to reduce the top rate of income tax and adjust the point of entry.
Michael Noonan has announced that the top rate of income tax will be cut from 41% to 40%, and also said that the Income Tax Standard Rate Band will increase by €1,000 to €33,800 for a single person.
Ms Phelan said: "The personal taxation burden had reached an unsustainable level and the changes announced in the budget will support greater levels of job creation in both multinational and indigenous companies."
"The measures announced today and the certainty they provide are extremely valuable and will make Ireland an even more attractive location for Foreign Direct Investment in future."
