Business Irish

Thursday 19 September 2019

TDs urged to keep tax breaks aimed at luring in more foreign executives

Stock image
Stock image
Cormac McQuinn

Cormac McQuinn

TAX reliefs to attract foreign executives to Ireland should be retained beyond 2020 and extended to newly-hired overseas workers, TDs will be told.

The Irish Tax Institute will argue that the reliefs would help maintain investment by multinationals in the face of competition from other European countries seeking to capitalise on the opportunities that arise from Brexit.

Please log in or register with Independent.ie for free access to this article.

Log In

Members of the Institute will appear before TDs on the Budgetary Oversight Committee tomorrow.

The Committee will also hear from the Irish Fiscal Advisory Council to be briefed on its pre-Budget 2020 report.

The Irish Tax Institute’s statement to the Committee outlines the need for extending the tax relief for foreign executives and suggests that changes to the Research and Development Tax Credit to make it easier for Irish companies to benefit from it.

Representatives of the Institute are to outline how the Special Assignee Relief Programme (SARP) provides income tax relief to “highly skilled” executives who are sent here from overseas by multinational companies to work in their Irish-based operations.

The statement says the relief – which benefits almost 800 people – has been “a critical element of our foreign direct investment (FDI) offering over the last seven years” including in  the tech, financial and pharmaceutical sectors.

The Institute argues that the highly-paid executives make “a significant contribution to the Exchequer and to the economy”.

They point out that other countries like the Netherlands and Spain have similar tax breaks and “are actively competing for UK business that is expected to seek new locations within the EU” after Brexit.

SARP is said to have enabled multinationals to attract senior management from parent locations like the US.

Online Editors

Also in Business