Ireland’s 12.5pc tax rate has been cited as the prime reason for anti-virus software firm McAfee deciding to move its European headquarters to Ireland next year, leading to the potential loss of 81 jobs in Amsterdam. It is understood that McAfee has yet to decide whether to locate its offices in Dublin or Cork.
The 12.5pc Irish tax rate compares favourably against the 34pc corporate tax rate in the Netherlands.
According to reports, the chief financial officer of McAfee, Stephen Richards, informed the Amsterdam staff of the proposed move last week. Symantec, McAfee’s main competitor moved its technical support team to Ireland from Amsterdam two years ago.
Under Dutch labour laws, the proposed move would require the approval of a works council, but the strong business case will likely lead to an approval.
It is understood that McAfee’s workers will be offered relocation or redundancy packages as well as a “business continuity bonus” to boost support for the move.
By John Kennedy