TMT sector hit, not favoured, by budget

The Irish Software Association and other industry bodies have indicated that the technology, communications and telecommunications [TMT] sector has not been favoured in the proposed budget and much of what has been put forward is ‘smoke and mirrors’.

Whereas corporation profits tax [CPT] will be reduced to 16% [from 20%] as of January 1, 2002, much of the Irish IT sector was either paying a lower rate [10% now rising to 12.5%], or not earning profits because of massive investment in R&D and product development.