alt Hacker NewsIt's not misappropriation. Other countries within the EU could be much more business incorporation and FDI friendly, and IDA Ireland tends to be one of the more competent trade promotion agencies within the EU.
Why should Ireland undermine 13% of it's GDP [0]?
Edit: can't reply
> Telling American multinationals you will have them pay 0 tax isn't exactly a "tax policy" as such
Ireland's corporate tax rate is 12.5% but drops to 6.25% if it's qualified R&D and IP income with an added 35% R&D tax credit.
It's attractive, but CEE states like Poland and Czechia can (and often do) match that.
The biggest attraction for Ireland is the fact that everyone speaks English in Ireland, and Irish tax and corporate legal firms have worked with American firms since the 1990s, which reduces the headache.
> Or to 0.005% if you're Apple
Which ended in 2014, yet Ireland still remains attractive for tech FDI.
At the end of the day, Ireland executed much better than it's developmental peers in the 1990s (Spain, Czechia, Russia, Ukraine, Cyprus, Greece, Argentine, and Libya in 1991 based on HDI) simply because it was much more business friendly.
[0] - https://www.trade.gov/country-commercial-guides/ireland-digi...
Replies
>Ireland's corporate tax rate is 12.5% but drops to 6.25% if it's qualified R&D and IP income with an added 35% R&D tax credit.
Or to 0.005% if you're Apple.
>The Commission's investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003 down to 0.005 per cent in 2014.
Telling American multinationals you will have them pay 0 tax isn't exactly a "tax policy" as such.
> Why should Ireland undermine 13% of it's GDP
Undercutting other countries on tax policy tends to piss them off. So it comes down to whether the benefits of the policy outweigh the blowback.
The 13% of GDP figure can be a bit misleading as GDP from being a tax haven tends to help the average irish citizen a lot less than more traditional ecconomic activity.