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Online News Sources
The Irish Independent: www.unison.ie/irish-independent/
The Irish Times: www.ireland.com/newspaper
Business Environment
Ireland offers an excellent business infrastructure with good
tele-communications; this coupled with the widespread use of the
English language, membership of the European Union, and the
pro-business attitude of the Irish regulatory authorities makes the
country a very convenient and effective business base.
Irish company law is contained in the Companies Acts 1963 – 1990.
Any overseas company may operate in Ireland as a branch, but must
register with the Registrar of Companies under Part XI of the Companies
Act 1963. Since 2000, it has been a requirement that Irish companies
need at least one resident director, or must deposit an insurance bond
with the Registrar. As from 1st October 1999, the Finance Act 1999
renders all Irish incorporated companies resident, subject to certain
exceptions.
It is not necessary to establish a separate subsidiary in order to
carry out corporate financial functions in the IFSC; there are agency
companies and 'shared service centres' which provide certificated
services to overseas client corporations for a number of the more usual
corporate functions
The term 'offshore' is not used in Irish legislation or in
describing company forms. Use of the various special regimes available
in the Shannon Free Zone, the Dublin IFSC, or through the
'Manufacturing Rate' of tax, or via a non-resident company are the main
ways of achieving offshore treatment, although all these regimes have
effectively been superseded by the introduction of a nation-wide
corporation tax rate of 12.5% as from 2003.
In 2003 regulation of the financial sector was consolidated under
the Irish Financial Services Regulatory Authority (IFSR) , set up under
the Central Bank of Ireland. The IFSR governs financial sectors
including funds, banking and insurance as well as consumer protection.
A financial service ombudsman has been created to manage customer
complaints. But since the new regulator effectively operates within the
Central Bank, many commentators feel that little has changed The
Central Bank and Financial Services Authority of Ireland Act 2004 which
came into effect on 1 August 2004, gave the IFSR power to impose
administrative sanctions where financial service providers have been
found to be non-compliant with legislation or regulatory requirements.
Taxes
The corporate tax rate is 12.5% (2004). A 25% rate applies to
passive income and income from certain land dealing activities, mining
and petroleum activities. A special 10% rate applies to ‘passive
income’ and income from defined land-dealing activities, mining and
petroleum. A 10% rate applies to active trading income from defined
existing manufacturing companies and the qualifying income of
International Financial Services Centre and Shannon-based companies.
The special rate will expire between 2003 and 2010 (depending on the
type of company in question and when it received approval for the 10%
rate) and will be replaced by the standard 12.5% rate. Capital gains
are taxed at 20%. Exports are zero rated for value-added tax (VAT),
except those to unregistered persons in the EU. Companies that export
75% or more of their output can apply to the Revenue Commissioners for
authorisation to receive almost all of their goods and services from
Irish and foreign suppliers free from any VAT. Ireland is a member of
the EU and all border controls between member countries have been
eliminated under the Single European Market that allows duty free
importation of goods from other EU countries. Goods imported from
outside the EU are subject to customs duty at the rate set by the EU’s
Common Customs Tariff. Source: Government of Ireland and KPMG.
Repatriation of profits
A withholding tax of 24%
applies to dividends and other profit distributions made by an Irish
tax resident company. An exemption is available in the case of payments
to certain shareholders including:
- Irish tax-resident companies;
- charities and pension funds;
- certain collective investment funds;
- certain employee share ownership trusts;
- certain residents of the EU member states or tax treaty countries;
- certain companies and individuals that are residents of the EU member states or tax treaty countries.
Double tax agreements
Ireland has 44 double taxation
agreements with Australia, Austria, Belgium, Canada, Chile, China,
Croatia, Cyprus, the Czech Republic, Denmark, Egypt, Estonia, Finland,
France, Germany, Greece, Hungary, Iceland, India, Israel, Italy, Japan,
Latvia, Lithuania, Republic of Korea, Luxembourg, Malaysia, Mexico, the
Netherlands, New Zealand, Norway, Pakistan, Poland, Portugal, Romania,
Russia, Slovak Republic, Slovenia ,Spain, South Africa, Sweden,
Switzerland, the UK, the US, and Zambia.
Stock Exchange
The Irish Stock Exchange operates the Irish market in equities and
government bonds and is under the supervision of the IFSR. It is a key
element of the financial infrastructure of Ireland. In recent years the
Exchange has established a leading position globally in mutual and
investment funds and specialist securities listings.
The Irish Stock Exchange ISEQ overall index at 31 August 2005 was
6,672.28, a 7.74 % increase from the end of 2004. The Equity Market
capitalization was €86.40 billion as at 31 August 2005 .
Key Contacts
Irish Development Agency
Wilton Place, Dublin 2, Ireland
Tel +353 1 603 4000
Fax +353 1 603 4040
E-mail: idaireland@ida.ie
Internet: www.idaireland.com
Irish Financial Services Regulatory Authority
P.O. Box 9138
College Green
Dublin 2.
Phone: +353 1 4104000
Fax: +353 1 4104900
Internet: www.financialregulator.ie
The Irish Stock Exchange
28 Anglesea Street
Dublin 2
Tel: +353 (1) 617 4200
Fax: +353 (1) 677 6045
Email: info@ise.ie
Internet: www.ise.ie
Key Stats
Country Description
Republic of Ireland (Eire); Population: 4,015,676 (July 2005 estimated). Capital: Dublin
Currency (September 2005)
US$1 = €0.80 euro
Legal system
Based on English common law substantially modified.
Government:
Parliamentary democracy. Consists of a president and a bicameral
Parliament called the Oireachtas, made up of the House of
Representatives, the Dail Eireann, and the Senate, the Seanad Eireann.
The Senate can suggest amendments to legislation passed by the Dail,
but cannot permanently block legislation. Senate elections are held no
later than 90 days after the Dail’s dissolution. The president is
elected for a seven year term. The 166 members of the Dail are elected
for a five-year term by proportional representation (single
transferable vote) in multi-seat constituencies. The president
formally appoints the prime minister (the Taoiseach) after he or she is
chosen by vote in the Dail. The prime minister appoints a cabinet of a
minimum of seven and a maximum of 15 members. Under the Constitution, a
successor government can be formed without a general election where a
government ceases to retain the support of a majority in Dáil. Of the
60 members of the Seanad, 11 are nominated by the prime minister, six
are selected by the universities, and 43 are elected from five
vocational panels soon after the parliamentary elections.
Executive
President: Mary McAleese of the Fianna Fail (FF). The
president is elected for a seven year term by the people. In 2004
McAleese was the sole candidate, so no elections took place. The
government is formed by the FF and Progressive Democrats.
Prime minister: Bertie Ahern of Fianna Fail (re-elected in May 2002)
Politics
The minority centre-right coalition government of
Fianna Fail and Progressive Democrats have been in power since
elections in June 1997. In the elections held on 17 May 2002 Fianna
Fail won 80 seats in the 166-seat parliament and the Progressive
Democrats won eight seats. Fine Gael won 31 seats, down from 23 in
1997, Labour won 21 seats, the Greens six seats, Sinn Fein five seats,
and independents 14.
Economy: Ireland is a small, modern, trade-dependent economy with
growth averaging a robust 7% in 1995-2004. Agriculture, once the most
important sector, is now dwarfed by industry and services. Industry
accounts for 46% of GDP, about 80% of exports, and 29% of the labor
force. Although exports remain the primary engine for Ireland's growth,
the economy has also benefited from a rise in consumer spending,
construction, and business investment. Per capita GDP is 10% above that
of the four big European economies and the second highest in the EU
behind Luxembourg. Over the past decade, the Irish Government has
implemented a series of national economic programs designed to curb
price and wage inflation, reduce government spending, increase labor
force skills, and promote foreign investment. Ireland joined in
circulating the euro on 1 January 2002 along with 11 other EU
nations.(Source CIA- The World Fact Book)
Gross Domestic Product (2004 estimated)
GDP real growth 5.1%.
Balance of payments (2004)
Deficit €32,985 million.
Inflation rate (CPI) (2004 estimated)
2.2%
Labour force (2004 estimated)
1.92 million workers. Unemployment: 4.3%
Government financial year: calendar year
Public holidays (2005)
2 January; 17 March (St Patrick’s Day);
25 March (Good Friday); 28 March (Easter Monday); 2 May (Bank holiday);
30 May (bank holiday); 29 August (summer bank holiday); 25 December
(Christmas day –27 th is a holiday); 26 December (St. Stephen's Day).
Time Zone
GMT. The clock goes forward one hour at 1:00 on the
last Sunday in March and back to normal time at 1:00 on the last Sunday
in October.
Restaurant Guide
We Recommend:
Brownes Brasserie
The Commons Restaurant
Eden
Les Frères Jacques
La Stampa
L’Ecrivain
Patrick Guilbaud
Peacock Alley.
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