asked the Minister for Finance if he will declare Galway city an international services free zone by extending the 10 per cent manufacturing corporation tax to the international service industry, which will be located in the proposed new international services part in the next five years.
Written Answers. - International Services Tax Relief.
544.
The 10 per cent rate of corporation tax is intended to provide preferential treatment to manufacturing activity on a nation-wide basis. Under the provisions the 10 per cent rate is also available, subject to certain conditions, to nonmanufacturing activities carried out at Shannon Industrial Estate. The scope of these arrangements, which are provided for in Finance Act, 1980, continues the position which applied under Export Sales Relief and Shannon Relief since the 1950's.
In relation to international service activity, the Finance Bill, 1984, contains provision in section 45 whereby data processing services and software development services grant aided under the Industrial Development Authority's International Services Programme will be regarded as manufacturing for the purposes of the general 10 per cent rate scheme. I do not propose any further extensions of the 10 per cent rate to the service area.