IRELAND
4.3. Does the government have any FDI tax incentive schemes in place? The Irish tax legislation contains a number of measures which enhance Ireland’s attractiveness as a location of choice for FDI. Such measures include:
• Corporation tax at the rate of 12.5% on profits generated from the trading activities, including the active exploitation of IP.
• A tax credit for expenditure incurred on qualifying research and development (R&D) activities. Briefly, the credit is comprised of 25% of the incremental spend by a company in a specific year on its qualifying R&D expenditure over its qualifying expenditure in a base year (2003). The credit is available for the first €200,000 of qualifying expenditure on a volume basis (due to be increased to €300,000, subject to the enactment of the Finance Bill (No. 2) of 2013).
• Tax depreciation for capital expenditure incurred to acquire a variety of intangible assets over a 15-year period.
• Wide domestic exemptions from withholding tax on dividends and interest payments made by an Irish company.
• An exemption from capital gains tax for Irish holding companies disposing of qualifying shareholdings in subsidiaries.
In addition, Ireland has a wide network of double taxation agreements (70 signed to date), thus increasing its attractiveness as a location from which to do business.
4.4. Other than through the tax system, does the government provide any other financial support to FDI investors? A wide range of discretionary grants and incentives are available through the IDA to support businesses in Ireland. There is no formal screening process for foreign investment in Ireland, though investors looking to receive Irish government grants or assistance are often required to meet certain employment and investment criteria. These screening mechanisms are transparent, and do not impede investment, limit competition, or protect domestic interests.
5. Operating locally
5.1. What is the most common governing law of contracts and local business language? Irish law is the most common governing law of contracts. Although Irish (Gaelic) is the national language, English is the language used by most of the population and all business is conducted in English.
5.2. Explain any local content or local participation requirements relevant to foreign investors. There are none.
5.3. How difficult is it for foreign investors to secure expatriate visas for shareholder representatives and workers? Nationals of countries in the EEA and Switzerland generally have a right to live and work in Ireland.
Work permits are available for occupations with an annual remuneration of €30,000 or more (with a small number of exceptions where the remuneration is lower). The work permit is granted for two years initially, and then for a further three years. Either the employer or employee can apply for the employment permit, based on an offer of employment. Work permits are issued by the Department of Jobs, Enterprise and Innovation.
6. Legal and regulatory framework
6.1. Are there any other FDI-specific laws that foreign investors must be aware of? No.
6.2. What challenges if any do investors find in getting certainty around local law and regulation? The challenges are limited. Ireland has a transparent and stable legal and regulatory system, making it attractive to foreign investors. Ireland also has comprehensive double taxation agreements in place with a vast number of countries, which serve to promote trade and investment between Ireland and the partner countries.
7. Dispute resolution
7.1. How efficient are local courts’ enforcement and dispute resolution proceedings, and are there any procedural idiosyncrasies foreign investors must be aware of? Commercial disputes are usually dealt with in the Irish High Court which has jurisdiction to hear all claims with a monetary value in excess of €38,092.14. However, the Commercial Court (a division of the High Court) sometimes offers a more expedited process. The Commercial Court deals with commercial disputes with a monetary value in excess of €1 million. However, the Commercial Court judge hearing the application has overall discretion to allow or refuse to enter a case onto the commercial list.
While the courts remain the usual forum for the resolution of commercial disputes in Ireland, there is a growing interest in the use of alternative dispute resolution (ADR) as an alternative or an additional forum to the Irish court system.
7.2. Do the courts of the FDI jurisdiction respect foreign judgments and are arbitration awards enforceable in the jurisdiction? According to Council Regulation (EC) 44/2001 of December 22 2000 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Brussels I), EU member state judgments in civil and commercial matters are immediately enforceable across the EU without the need for an intermediate registration process in the enforcing state. The extent, however, to which a foreign judgment will be given recognition in Ireland, will be dependent upon the principles of private international law of the country of recognition.
According to the Arbitration Act 2010, which applies the United Nations Commission on International Trade Law (Uncitral Model Law) to all arbitrations (including international commercial arbitrations), all arbitral
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5.4. What foreign currency or exchange restrictions should foreign investors be aware of? None
5.5. Does the country prohibit domestic companies from doing business in any foreign jurisdictions? Ireland from time to time puts in place trade controls, generally at the instigation of the United Nations, the EU or the Organisation for Security and Co-operation in Europe. These include arms embargoes, import licensing, financial sanctions, travel bans and export licensing.
Trading outside the EU is often subject to restrictions and may require additional licences. Goods are controlled both at the time of export from Ireland and when imported into another country. Depending on the destination of goods, export licences may need to be obtained for certain categories of products and associated technology or software.
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