Thursday 29 September 2016

Ireland's corporation tax will remain low - it's not an issue, says IDA chief

Published 27/06/2016 | 13:15

IDA boss Martin Shanahan. Photo: Mark Condren
IDA boss Martin Shanahan. Photo: Mark Condren

Ireland's corporation tax will remain low and is a 'non-issue' despite fears that the European Union may move to increase the rate, the IDA chief executive Martin Shanahan has said.

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The IDA boss' comments come after a thinly veiled threat from Fine Gael MEP Brian Hayes, who said that if the EU looks to increase the rate, Ireland will leave the union.

"There is no issue in relation to the corporation tax rate, it’s 12.5pc and Government have been extremely clear that it will continue at 12.5pc.

"Taxation is a sovereign issue it is for national Government to make a decision it’s not an EU issue," the IDA chief said.

Mr Shanahan was slow to speculate on the potential economic impact a Brexit will have on Ireland's foreign direct investment.

"What we do know in the interim is that Ireland definitively has access to the European market and we’re extremely stable and I think that will play well with investors and it will be very attractive.

"In the short term companies are concentrating on the immediate fallout they’re watching the markets and so on. Over the coming days they will be looking at what impact this will have on global GDP, on European GDP and what impact in turn that will have on demand on the goods and services that they’re producing," he said.

Mr Shanahan was speaking at the launch of Tech/ Life a new €1.9m State-backed initiative that will look to attract 3,000 top tech professionals per year to Ireland.

The marketing initiative, which is also backed by the Irish tech industry, will look to help meet the demand for tech workers here as companies look to up their Irish operations.

The initial markets the initiative will target include central and southern Europe, which were identified on the back of analysis on talent movement and local search activity.

Tech/ Life Ireland delivery group chairman Karl Flannery said both industry and Government have recognised the need for the country to attract more talent here.

"We have engaged extensively together to understand the needs of the industry in the coming years and to develop this initiative. We are delighted to launch it today. I would encourage companies to register with the initiative and keep Ireland’s tech sector thriving through the attraction of the world’s best talent," he said.

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