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Executives moving to Ireland get tax breaks
Executives moving to Ireland get tax breaks
| Published: | 10 Feb at 9 AM |
Foreign executives that move to Ireland after landing key jobs in Irish-based firms will not have to pay tax on 30 per cent of yearly income between €75,000 and €500,000 due to new changes to the Finance Bill, according to the Irish Times.
The exemption is applicable to executives who stay for a period of one to five years. It will be open to employees arriving in Ireland from overseas in the coming three years who are able to create employment and who could be put off by the 52 per cent marginal tax rate
Michael Noonan, the minister for finance, announced the measure in order to help firms lure foreign employees in research and development who have the potential to create jobs in Ireland. He said that the assignee relief programme has been introduced on the IDA’s advice, which had said other countries were offering such incentives to foreign executives.
Mr Noonan said that this special incentive for skilled people arriving from overseas is now what many other countries offer, adding that the one in place in the Netherlands is very effective. He went on to say that there is the potential loss of business so, on that advice, they decided to introduce it.
Ireland’s government has estimated that the measure will cost €3m to begin with and €5m overall, and that there may be 80 to 100 applicants initially.
The exemption is applicable to executives who stay for a period of one to five years. It will be open to employees arriving in Ireland from overseas in the coming three years who are able to create employment and who could be put off by the 52 per cent marginal tax rate
Michael Noonan, the minister for finance, announced the measure in order to help firms lure foreign employees in research and development who have the potential to create jobs in Ireland. He said that the assignee relief programme has been introduced on the IDA’s advice, which had said other countries were offering such incentives to foreign executives.
Mr Noonan said that this special incentive for skilled people arriving from overseas is now what many other countries offer, adding that the one in place in the Netherlands is very effective. He went on to say that there is the potential loss of business so, on that advice, they decided to introduce it.
Ireland’s government has estimated that the measure will cost €3m to begin with and €5m overall, and that there may be 80 to 100 applicants initially.
