#Budget13 – Corporation tax to remain unchanged at 12.5pc

5 Dec 2012

Finance Minister Michael Noonan TD confirmed today in his Budget for 2013 that corporation tax will remain at 12.5pc.

He said that Ireland’s competitiveness for mobile foreign direct investment remains a central plank of the Government’s export led recovery strategy for the country.

“The Government remains 100pc committed to maintaining the 12.5pc corporation tax rate, a sentiment I believe is shared by the vast majority of Deputies in this House. Even though this commitment has been stated numerous times, it is worth repeating so that there can be no doubt.

Inter-government deal between Ireland and the US

Noonan said that for the past 50 years Ireland sought to have a competitive corporate tax strategy to attract job-rich FDI in to the country.

“Our policies in relation to tax co- operation and international exchange of tax information have always earned international respect.

He said it was in this context that Ireland has become one of the first countries in the world to agree a new inter-governmental agreement with the Unites States in relation to the US Foreign Account Tax Compliance Act (FATCA).

“Reaching such an early agreement with the United States will be of benefit to Irish business,” Minister Noonan said.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years