202. Deputy Micheál Martin asked the Minister for Business, Enterprise and Innovation if she or her officials have met recently to discuss the implications for foreign direct investment here due to the most recent changes made to tax law in the United States of America. (Question 19086/18 asked on 01 May 2018)
Minister for Business, Enterprise and Innovation (Deputy Heather Humphreys): My Department and I are aware of the U.S. Tax reform legislation that was enacted shortly before Christmas. This is the most substantial change to the US tax code in 30 years. These reforms include a reduction in the US corporate tax rate and a move to a territorial system.
It is important that we continuously monitor the situation as companies and Governments around the world analyse the implications that may arise from what are complex changes. It is not possible to say at the moment what, if any, the impact might be for Ireland. My officials and I, as well as the IDA, remain in regular contact with companies and with colleagues across Government as the international taxation environment evolves.
Ireland’s corporation tax regime will continue to be competitive while also offering long-term certainty to international business. Our regime is underpinned by substance. Enterprise 2025 Renewed reaffirms our focus on export-led growth that is underpinned by innovation, talent and investments in place-making. We cannot predict the future, but we are taking action to deepen resilience across our enterprise base. We will continue as a country to be anticipatory and adaptive to global challenges.
Our Corporation Tax regime, whilst important, is only one element of Ireland’s value proposition for FDI. Business location decisions are informed by a range of factors. Access to the EU market is, and will remain, a key factor in attracting FDI from the US and elsewhere. Other key factors involved in attracting and maintaining FDI here include:
- Talent: we have a talented workforce that is hardworking, flexible and adaptable to change and a first-class education system that helps nurture the future talent required.
- Innovation: we have developed leading edge capabilities in R&D, have a supportive regime for innovation and continuously work with enterprises to gain more investment in high value added research, development and innovation activities.
- We have a proven track record of delivery for enterprise and it is easy to do business here.
- We are English speaking yet can service over 140 languages from Ireland which greatly assists ICT and Financial Services companies in particular.
- Through Project Ireland 2040, the National Planning Framework and National Development Plan, we will focus coordinated investments to ensure that we offer a range of compelling, dynamic and competitive locations for investment throughout Ireland.
I will remain alert and responsive to any changes in the US or global tax environment working with colleagues across Government.