Dáil Éireann Debate, Tuesday - 2 November 2021
105. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he remains satisfied that Ireland will continue to be attractive as a location for foreign direct investment with particular reference to the recent changes to Ireland's corporation tax rate; and if he will make a statement on the matter. [52836/21]
View answer110. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if foreign direct investment has been to any extent affected by changes in the corporation profits tax; and if he will make a statement on the matter. [52856/21]
View answerI propose to take Questions Nos. 105 and 110 together.
The Government’s recent decision to join the OECD international agreement is unlikely to adversely impact Ireland’s existing base of foreign direct investment. From a tax perspective, Ireland will remain a highly competitive place to do business. We will continue to offer a 12.5% rate to over 95% of companies operating in Ireland and there will be no change for those 160,000 enterprises and their approximately 1.8 million employees.
For those larger companies affected by the decision, the recent changes to the OECD agreement will provide clarity on the global minimum rate that will apply to them, thus providing much-needed certainty for investors. Investors’ confidence in Ireland remains strong, as evidenced by investment flow over recent months and years. In the face of global declines in the flow of FDI, in 2020 Ireland increased its market share of FDI into Europe.
Even with the challenges faced in 2020, owing to both Brexit and the COVID-19 pandemic, Ireland saw significant increases in foreign direct investment. In the first half of this year, IDA Ireland won 142 foreign direct investments, accounting for 12,530 jobs; this is an increase of 31% on the same figures in 2020.
Ireland has a number of key strengths that continue to make us a highly attractive destination for foreign direct investment. These include our highly educated and flexible workforce, a track record as a successful home to global businesses and our continued commitment to the European Union, the single market and Eurozone.
Despite the changes that global tax reforms will bring, as the results of 2020 and 2021 have shown, Ireland remains a highly competitive place to do business and has much to offer prospective inward investors.
