Corporation tax to stay at 12.5pc

7 Dec 2010

Finance Minister Brian Lenihan said that corporation tax of 12.5pc – crucial to inward investment in Ireland – is to be maintained at the same level.

In delivering Budget 2011, he said: “Two weeks ago, all political parties in this House supported a motion calling for the maintenance of the 12.5pc corporation tax rate.

“Our commitment to the 12.5pc rate was restated in the National Recovery Plan. I welcome recent comments by European finance ministers who understand the importance of this issue to Ireland. There will be no change to Ireland’s corporation tax rate.”

Minister for Enterprise Batt O’Keeffe said the measures in the 2011 Budget announced today would underpin a return to economic growth by investing in jobs and reducing the Exchequer deficit.

“In finalising my own budget, I have prioritised the operating budgets for IDA Ireland, Enterprise Ireland and Science Foundation Ireland so that they can support job creation next year.

“I expect that about 30,000 jobs will be created next year through my department’s agencies alone on the basis of the Government’s commitment today to support enterprise, research, development and innovation.

“In particular, the €508m capital investment for these agencies will allow us to continue to win foreign direct investments, grow indigenous exports and create high-quality sustainable jobs in the smart economy,” said O’Keeffe.

“Importantly, too, our 12.5pc corporation tax rate will not change,” said O’Keeffe.

He said the enterprise economy remains resilient, with the export sector performing well and exports expected to increase by 5pc next year.

“Foreign direct investments are continuing to grow and we are pricing ourselves back into the global marketplace by dramatically improving our competitiveness.”

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