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IT Companies Flock to Ireland
Ireland's prominence as a favourable location for IT companies has been bolstered this week by the creation of hundreds of jobs by four new IT and informatics companies locating their activities in Ireland. These announcements come just weeks after it was revealed that 250 new positions have been created by software company, SAP, as well as the unveiling by Intel's chief executive of the decision to choose Ireland as one of three locations where it will manufacture its next generation of computer chips. Further evidence of Ireland's predominance in the IT and informatics sector is the existence of the headquarters of major firms such as Google, Facebook, and Twitter here. Ireland is also the largest exporter of software in the world. Taxand Ireland assesses the tax advantages that these multinationals may benefit from.
It is understood that influential factors in the location of these types of businesses in Ireland are the favourable intellectual property regime, low corporation tax rates and a highly skilled IT workforce. Furthermore, capital allowances are available for capital expenditure incurred on the creation and acquisition of intangible assets including trade marks, patents and IP.
Ireland also offers a broad stamp duty exemption in relation to the acquisition of IP and has a robust, mature and sophisticated legal framework in place to provide appropriate legal protection for IP. Ireland is a party to all the main international conventions relevant to IP. All categories of IP can be protected, enforced and commercially exploited here.
It is an objective of the Irish Government to develop a smart economy. The existence of the above incentives and indeed their expansion in recent legislative amendments ensures that Ireland remains a favourable and popular location for holding and exploiting Intellectual Property for multinational businesses.
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