Tax incentives target 10,000 jobs

Specific taxation incentives to aid in the creation of 10,000 jobs in the international financial services sector are included in the bill.

Ernst & Young financial services tax partner Donal O’Sullivan said there were a range of positive measures included for the international investment funds industry in Ireland.

“New provisions strengthen Ireland as a location for fund management companies and funds and enhance the ability of fund managers to make their products more cost effective.

“The bill includes measures to ensure Ireland will continue to be a leading location for UCITS [undertaking for collective investment in transferable securities[ funds.”

These allow financial institutions to operate freely throughout the EU on the basis of a single authorisation from one member state.

Mr O’Sullivan welcomed specific stamp duty changes which extended reliefs to accommodate a range of financial transactions. “The primary aim is to allow these exemptions, in the case of investment funds, where there is no change in the economic ownership of the underlying assets being transferred.”

The measures aimed at the international financial services sector include: Reducing double taxation in the corporate treasury and aircraft leasing sectors; providing clarity around the tax treatment of complex financial transactions in terms of stamp duty in particular; further easing the administrative burden in relation to non-resident investors in Irish investment funds; and allowing Irish structured finance companies to invest in “forest carbon credits”.