Multinationals lobbying for bigger executive tax breaks
Sunday November 22 2009
MULTINATIONALS are calling on the Government to boost tax breaks for foreign executives in next month's Budget after recent tax hikes have made it almost impossible to attract talent here.
Currently, foreign executives who work in Ireland pay full tax on the first €100,000 earned, with tax breaks only kicking in on any money earned over €100,000.
Other EU countries allow foreigners to earn up to a third of their entire income tax free. “The €100,000 cap should be significantly lowered; thereby allowing foreign executives to claim tax breaks on a higher portion of their income,” said Martin Murphy, managing director of Hewlett Packard in Ireland.
“A fair cap would be €30,000. Senior executives should be encouraged to relocate to Ireland — to lead investment and job creation.” The American Chamber of Commerce said it would support moves by “the minister ensuring that expatriate taxes remain competitive with other jurisdictions”.
Accountancy bodies have described tax breaks for foreign executives as “limited”. “Irish companies are trying to bring in talent from around the world but executives are looking at our 55 per cent tax rates and saying ‘no way’,” said John Bradley, tax partner with KPMG. “Any executives who come from the EU are not entitled to the tax breaks. “And executives from outside the EU must be working in Ireland for at least three years to be eligible.”
- LOUISE McBRIDE
