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Finance Bill 2012 to Attract Investments to Ireland

Finance Bill 2012

Finance Bill 2012

Finance Bill 2012

The finer details of the Budget 2012 have been released in the Finance Bill 2012 and it contains a significant number of items that favour Foreign Direct Investments. The Finance Bill 2012 contains major incentives for companies investing in Ireland. The main points are:

  • Research and Development (R & D) relief
    • Key employees, excluding directors and certain others, can avail of a reduction in their income tax liability where their employer surrenders their R&D tax credit to the employee in question
  • Foreign Earnings Deduction (FED)
    • Support for companies expanding into certain emerging markets by giving employees tax relief
  • Special Assignee Relief Programme (SARP)
    • Intent to encourage the relocation of key talents within organizations to Ireland; further improvements have been made as well as many restrictions have been removed
  • For instance, the Budget 2012 will keep:

  • 12.50% Corporate Tax Rate applicable to Irish trading
  • 0% rate for new companies for the first three years of trading which were incorporated and started trading in 2009 (with profit up to 320,000 per annum)
  • Ireland keep holding and negotiating a network of double taxation treaties. It avoids the need to pay tax twice on the same income or gains for international companies. Currently, 55 countries are concerned and 46 countries already applied it – including BRIC countries

Those incentives should attract talent and create jobs. Indeed it supports export by helping companies willing to expand their business into emerging markets. It also would grant a special deduction for an individual spending at least 60 days a year in developing market for BRIC countries.

For further information, please follow the link below:

Finance Bill 2012
The STAR Team