Dáil Éireann Debate, Thursday - 9 December 2021
170. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he remains satisfied that foreign direct investment remains secure notwithstanding international taxation changes; and if he will make a statement on the matter. [61059/21]
View answerIn July, the Government took the decision to join 140 member states in signing up to the OECD’s International Tax agreement. For the overwhelming majority of enterprises in Ireland, nothing changed. For the 95% of enterprises outside of the scope of the agreement, it is very much business as usual.
The small number of larger companies affected by Ireland’s decision to join the OECD agreement now have much-needed clarity, a long-term view, and the assurance of enduring stability and certainty as they make decisions about where to invest.
Investors are not deterred. The ongoing successes of my agency, IDA Ireland, demonstrate how secure the flow of foreign direct investment is into Ireland. Recent data show that in the first half of this year, IDA won investment from 142 companies, resulting in 12,530 jobs. This is a substantial increase on 2020 figures and bring us close to the record highs achieved prior to the outbreak of Covid-19. This remarkable performance in the face of Brexit, the pandemic, and a global downturn in FDI demonstrates our considerable and hard-won resilience.
Our tax rate is only one aspect of what Ireland offers potential investors. Companies who set up or expand in Ireland reap the benefits of our business-friendly environment, our highly skilled and educated workforce, and our commitment to the European Union and the Single Market.
Despite the challenges thrown up in the last two years, Ireland has proved once again to be a resilient, and stable platform for companies choosing to invest here. The decision on corporate tax has not impacted on Ireland’s reputation as a competitive, attractive, best-in-class location to do business.
