The Leading Edge - Spring 2008 - (Page 12)

global Working globally: Top 10 misconceptions of doing business in ireland IRELAND HAS one oF THe longeST aveRage indUSTRial WoRking WeekS IN EUROPE (40 HOURS INCLUDING OVERTIME) AND BECAUSE OF FEWER PUBLIC HOLIDAyS, THE LONGEST WORKING yEAR lack of incentives for businesses to set up in ireland. More than 1,000 multinationals have chosen to locate and operate their businesses from Ireland and take advantage of the many incentives available to businesses setting up here. Employment grants are available to companies where permanent full-time positions are created and are the most commonly used type of grant, particularly for international services companies. Employment grants, which generally constitute the most significant proportion of grant packages, are exempt from tax. Companies operating in Ireland are also eligible to apply for European grants administered from Brussels. One of the key eligibility criteria is that the project must involve companies, universities or research institutes in at least two EU member states, which must not be “related” companies. 1 Companies are exempt from audit. Some companies are exempt from audit but not all. To qualify for exemption from the requirement to have its accounts audited, a company must satisfy all the following conditions in respect of the preceding year as well as the current year, unless the financial year for which the exemption is being sought is the company’s first financial year: • Turnover (sales revenue) does not exceed €7.3 million ($11.4 million) • Balance sheet does not exceed €3.65 million ($5.72 million) • Average number of employees does not exceed 50 2 3 4 Workers are non-skilled labor. This is another misconception. The educational system in Ireland ranks among the best in the world. Approximately 46 percent of new entrants to third-level education in Ireland undertake business, engineering, computer science or science courses. While Ireland is English speaking, a significant proportion of students and graduates is proficient in more than one language. ireland is not a tax haven. While Ireland may not be a tax haven in the traditional sense of the term, it manages to combine membership in the European Union and an extensive tax treaty network with a very competitive corporation tax regime that allows it to compete for and attract international business. Ireland has EU approval for its corporation tax rate of 12.5 percent on trading profits. It also has a favorable holding company regime and many specific tax incentives and tax relief for locating research and development activity here. 12 VOLUME 8 n ISSUE 3 n SPRING 2008

Table of Contents Feed for the Digital Edition of The Leading Edge - Spring 2008

The Leading Edge - Spring 2008 Contents No Place To Go But Up Lessons from Harvard Bits & Pieces Conducting Business Outside the United States Top 10 Misconceptions of Doing Business in Ireland In a Nutshell: Q&A The Leading Edge Alliance

The Leading Edge - Spring 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.