Since last month's Budget the Government has sought to assure both voters and possible investors that Ireland will still be an attractive place to do business, after the closing of the so-called 'double Irish' tax loophole.
It seems that once it's closed and the Government introduces its ‘knowledge box’, Ireland will still offer good incentives to top companies who are thinking of setting up here. Its latest tax arrangement could see corporation tax charged on the profits made from intellectual property run as low as 6.25 percent, half of Ireland's 12.5 percent corporation tax rate .
Changing tax structures have been a topic of conversation over the first two days of the Web Summit. Speaking in Dublin yesterday former Apple CEO John Sculley said that Ireland could lose its “edge” if it does not remain competitive on tax.
Today’s news seems to give validation to the Government’s stance that Ireland will remain a top destination for foreign investors. It is not just the fact that they are announcing 400 jobs, but it's the sector that they are in that's worth noting.
These positions are being created by eight high-growth companies, they are not multinational corporations but they are expanding rapidly. Focusing on bringing more of these growing operations to Ireland is part of the Government’s Action Plan for Jobs. These jobs are spread across a broad range of activities including software development, digital media and telecoms.
The IDA’s CEO Martin Shanahan became a viral hit this week after calmly fielding questions from an obnoxiously under-briefed presenter on CNBC’s Squawk Box. He commented on today's announcement saying that it cemented Ireland’s “reputation as a location for fast-growing businesses to expand into international markets”.
The Taoiseach added that: "The Government's priority is securing the economic recovery through job creation and continuing to provide a great environment for high-growth companies to expand."
Amid uncertainty over future tax structures the Government can point to today’s news as a sign that firms still feel confident that the future is still bright on Irish shores.
