IDA plays down fears over US tax amnesty

THE IDA yesterday said it was not concerned a new US corporate tax amnesty would have a negative impact on multinational investment and jobs in Ireland.

The amnesty, signed into law by President George W Bush just before last week’s election, allows American companies to repatriate their foreign income at a new tax rate of 5.25%.

Prior to the change, which is included in the American Jobs Creation Act, US firms tended to keep foreign earnings abroad to avoid paying a hefty 35% tax on all profits sent home.