Irish Finance Minister Michael Noonan announced that the country will further reduce the corporate tax from very low 12.5 percent to 6.25 percent, reports The Telegraph.
In order to remain competitive and attract even more global corporations and tech giants to its state, Ireland has committed to offering an exceptionally low corporate tax rate to any company investing in research and development of patents and innovations. This is part of a program called “knowledge development box,” through which Ireland is building its competitiveness and its new economic model.
“One condition is – everything must be registered in Ireland, every patent and every newly hired person must be registered in Ireland,” Minister Noonan stated.
Moreover, more than 1,000 of the world’s largest companies have already relocated their operations to Ireland precisely because of the low corporate tax. It is no secret that the existing rate of 12.5 percent was also prone to individual agreements between companies and the Irish Government. With this move, Dublin hopes that Ireland will maintain its primacy in attracting new companies and continue to record impressive economic growth.
