Ireland’s 12.5pc corporation tax ‘not up for negotiation’

18 Nov 2010

As IMF and EU personnel sit down to talk with Irish Government officials today, Ireland’s Minister for Enterprise and Innovation said the 12.5pc corporate tax rate, which is critical to securing inward investment, is not up for negotiation.

Minister for Enterprise, Trade and Innovation Batt O’Keeffe TD reiterated the Government’s commitment to Ireland’s 12.5pc corporation tax rate.

“Our 12.5pc corporation tax rate is a vital draw for foreign direct investment (FDI) and it remains a key component of our industrial policy.

“It is an aspect of taxation on which the Government is not for turning and it is vital that we keeping hammering that message home to the international investor community,” said O’Keeffe.

O’Keeffe said FDI generates more jobs per head of population in Ireland than in any other country and foreign firms support some 240,000 Irish jobs.

“They account for 50pc of corporation tax, 70pc of national exports and a €19bn spend in the economy, including €7bn in payroll.

“Internationally, FDI was down 30pc last year but in Ireland it fell by just 4pc.

“Our enterprise economy is growing.

“Our economic recovery will be driven by sustainable economic export-led growth,” said O’Keeffe.

The US here represents 8pc of all US investment in the EU and 4.6pc worldwide. In 2008, US firms paid more than €2.5bn to the Irish exchequer in corporate tax (40pc of total corporate tax take in 2008) and contributed a further €13bn in expenditure to the Irish economy in terms of payrolls, goods and services employed in their operations.

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