IDA IRELAND notes today’s decision by Government to sign up to the political agreement at the OECD on a new tax framework.
IDA Ireland CEO Martin Shanahan said: “I believe that the changes resulting from Ireland’s participation in the global tax deal are not likely to adversely impact Ireland’s existing base of Foreign Direct Investment (FDI). Ireland will remain competitive from a tax perspective and the recent changes to the draft OECD agreement secured by Ireland provide clarity on the global minimum rate that will apply for large companies, making it possible for Ireland to continue to provide stability for investors.
Investors’ confidence in Ireland remains strong as evidenced by the investment flow over recent months and years. In 2020, Ireland increased its market share of FDI into Europe in the face of global declines in FDI flows. Ireland’s focus on the sectors that underpin a modern economy has been key to this. The pipeline of investment in the year-to-date has been extraordinarily strong with investment decisions being taken in the context of the discussions on the global agreement.
Tax is important but it is but one part of Ireland’s proposition and it is imperative that we continue to remain competitive on all aspects of our investment offering, given the level of global competition for the investments we are trying to attract.
FDI is central to Ireland’s economic success. It has transformed Ireland utterly and brought a level of prosperity that could not have been imagined decades ago.
There is still a lot of detail to be worked out around the implementation of this global agreement, but there is no reason that Ireland cannot continue to build on the very strong existing base of FDI that we have built up, provided we continue to do the right things.
In the days, weeks and months ahead, IDA Ireland will engage with existing investors and prospective investors as we always do.”