Deloitte And Touche Releases Irish Taxation Guide

by Jason Gorringe, Tax-News.com, London

27 June 2003

Leading global accountancy firm, Deloitte and Touche has this week released its latest guide to the Irish taxation regime, aimed at international firms wishing to do business in the country.

The comprehensive review features nine separate articles encompassing the following aspect of taxation and business laws and regulations: indirect taxes; inbound investment; Irish corporate tax and EC treaty compatibility; international leasing; banking and treasury; mutual funds; securitisation; private equity investment; and international assignments and employee share schemes.

Commenting on the publication, D&T managing partner Pat Kenny told RTE news: "Ireland is now repositioning itself as one of the locations that capital-exporting countries are focusing on for the location of higher-value aspects of their operations."

"These companies are seeking locations for intellectual property, R&D, branding, global procurement and buy and sell functions with a view to generating operational efficiencies and profit taxable at the 12.5% rate," he added.

Pat Cullen, a tax partner at D&T explained that Ireland's success at attracting a high level of foreign investment has resulted from "many factors including our membership of the EU, our English-speaking, young, educated and available workforce and our tax system."

Mr Cullen added: "The corporate tax rate of 10%, which applied to both the manufacturing and financial services sector, has been replaced after January 1 2003 by the 12.5% corporate tax rate for virtually all new trading operations. Industries as diverse as healthcare, pharmaceuticals, information technology and financial services have found a home in Ireland, generating operational and tax benefits for themselves and providing opportunities for the Irish indigenous sector to develop their own domestic operations leading in turn to a more profitable and mature indigenous sector."

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