Budget 2017: ‘Competition has never been stronger’
Ireland has an enviable track record in foreign investment, upon which IDA Ireland is committed to building. Competition for foreign investment has never been stronger and countries are adjusting their proposition for investors on a daily basis. There are several welcome developments in the budget.
Firstly, a lot has been said about Ireland’s corporate tax rate and the regime in recent months. Finance Minister Michael Noonan clearly outlined that Ireland will not be changing the 12.5% tax rate, nor have there been calls for it to be changed. The stability of the 12.5% rate is a key factor for our investors. It is important that Ireland’s commitment to the rate was restated in a budgetary context.
Secondly, the IDA notes that the provision of additional resources to IDA in order to win business for Ireland. This is welcome and necessary and we will await the detail. Every investment agency in the world will be competing to win mobile investment in a post-Brexit environment. This additional resource will help us compete for any mobile investment arising out of Brexit.
Thirdly, the funding and initiatives aimed at increasing housing supply are welcome. The increase in housing supply is important for social reasons, but ensuring a stable supply of housing is also important from an economic perspective.
Fourthly, the reallocation of significant funding to the education sector is hugely welcome news from an investor perspective. Ireland’s best resource is its talent — both home grown and those highly skilled people we have attracted here. Time and again, investors tell us that access to talent is the key reason that they chose Ireland as a place to locate their business.
Finally, IDA notes the proposed extension of the Special Assignee Relief Programme until the end of 2020, the USC rate cuts, and the change in the number of days required to be spent abroad for the foreign earnings deduction.
