IDA plays down UK corporate tax rate threat

The IDA has played down the threat to Ireland’s competitiveness of the UK’s plans to slash its corporate tax rate to 15%, saying the tackling of high business costs and ensuring the availability of a skilled workforce are bigger concerns.

At yesterday’s publication of the agency’s performance review for the first half of 2016, IDA Ireland chief executive Martin Shanahan said Ireland currently has one of the most competitive, consistent and transparent tax regimes in the world; which — along with our access to the European Single Market — acts as a huge attraction to foreign companies looking to invest.

Earlier this week, UK chancellor George Osborne unveiled plans to speed up Britain’s scheduled reduction of its corporate tax rate (it had originally planned lowering from 20% to 17% by 2020) in a bid to attract business that may be put off by the country’s vote to leave the EU.