By Andrew Lambe, 3rd August 2010
The Irish Businesses and Employers Federation (IBEC) has recently published a document outlining the advantages of doing business in Ireland. According to IBEC, the main advantages of Irish Company Formation can be summarised as follows:
- Ireland is an English speaking country close to the European market. Over 500 million people live within a three-hour flight from Dublin.
- Ireland is ranked third in Europe (seventh in the world) by the World Bank in terms of ease of doing business. Ease of paying taxes and starting a business, as well as investor protection, are some areas where Ireland scores particularly well.
- Ireland is committed to maintaining its competitive 12.5% corporation tax rate. The corporation tax system is simple and transparent, and income taxes are relatively low.
- The Irish labour force is among the best educated in the world; the share of population aged 25-34 with a third level qualification is higher than in the US or the UK, and is above the OECD average. Ireland ranks third in the euro area in terms of mathematics, science and computing graduates aged 20-29.
- In the 2010 IMD World Competitiveness Yearbook, Ireland was ranked fourth in the world in terms of availability of skilled labour and openness to new ideas, sixth on labour productivity and seventh for the flexibility and adaptability of people.
- The European Commission forecasts that the cumulative fall in Irish unit labour costs will be 9% in the period 2008-2011. Relative to the EU average, this represents an improvement of 13 percentage points. Public sector pay has fallen by 14% on average over the past two years and a major public sector transformation programme is underway.
- Energy costs have fallen by nearly 30% relative to the EU average. The cost of commercial property and business-to-business services fell considerably in 2009. The completion of the inter-urban motorway network in 2010 will reduce travel times between the major cities by up to 50%.
- Large falls in house prices (up to 50%) and rents (25%) have dramatically improved Ireland’s attractiveness as a destination for young, mobile workers.
- Though Ireland’s debt burden has increased dramatically, Ireland started from a very low level of debt. Consequently, Ireland’s debt-to-GDP ratio is not out of line internationally. There is a general public acceptance of the necessity to stabilise and begin reducing the deficit.
- Ireland’s decisive and credible action in curbing its deficit and the flexible reaction of the labour market have gained recognition in the international markets. A June 2010 bond auction was oversubscribed three-fold and the Irish Exchequer is now fully funded through to the end of 2010.
- Although the economic crisis has been severe, Ireland has demonstrated resolve and flexibility in addressing its challenges. At the same time, the qualities that make Ireland a great place to do business remain unchanged.
The above points further emphasise the advantages of incorporating a company in Ireland as a corporate tax base.
The full document can be accessed by clicking on the following link:
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