On 17 February 2012 it was reported that tax reform features heavily in Ireland’s new Action Plan for Jobs, a package designed to boost job creation and establish Ireland as the best small country in which to do business.
Reforms include the introduction of a Special Assignee Relief Programme, which aims at reducing the cost to employers of assigning skilled individuals from abroad to take up positions in the Irish-based operations of their employer by offering exemptions from income tax. Also new is a Foreign Earnings Deduction, which will assist companies seeking to expand into emerging markets in Brazil, Russia, India, China and South Africa.
In addition, the corporation tax exemption for start-ups will be extended to 2014. Lastly, the government will improve the tax system for businesses through efficiencies in administration and the extension of double taxation agreements. The government has reaffirmed its commitment to the 12.5% corporation tax rate and the value-added tax (VAT) reduction for the tourism sector introduced early last year.
