Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

157. To ask the Minister for Finance if he can foresee any changes to Ireland's corporation tax rate; and if he will make a statement on the matter. [15991/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Taoiseach, myself and other members of the Government have repeatedly expressed the Government’s commitment to the retention of the 12.5% rate and I do not foresee any changes in this regard.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

158. To ask the Minister for Finance if the decision by the British Government to reduce their corporation tax rate to 20% will have ramifications for Ireland's ability to attract foreign direct investment; and if he will make a statement on the matter. [15987/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

My Department is aware of the need to maintain a competitive corporate tax regime and to that end, closely monitors developments in other countries. However, it is not appropriate to single out any particular country or corporate tax system and comment on them in this way.

The changes that I announced in Budget 2013 and introduced in Finance Act 2013 highlight the on-going work by my Department to make sure that the Irish corporate tax offering stays competitive as we work to attract investment and jobs to Ireland. This year, this included further enhancements to the R&D regime, the introduction of a tax regime for Real Estate Investment Trusts and the package of measures to assist the SME sector (among others).

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

159. To ask the Minister for Finance if he is concerned that Cyprus was required to increase their corporation tax rate to 12.5%; if this decision will have implications for Ireland; and if he will make a statement on the matter. [15986/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The issue of Cyprus raising its corporate tax rate from 10% to 12.5% is a matter for the Cypriot Government. The new rate was agreed as part of the funding programme which was negotiated with the troika.

There are no negative implications for Ireland as a result of this decision and it will have no impact on our 12.5% corporate tax rate. On the contrary, this increase in the Cypriot corporate tax rate could be regarded as vindicating the existing Irish rate as it would now appear that the Troika regards this as a minimum corporate tax rate for its purposes. I would like to point out that there is still an EU Member State with a corporate tax rate of 10%.

This Government, with the support of the vast majority of members of the Oireachtas, maintains the long-standing policy in this country of keeping corporate tax rates low in order to stimulate employment and remains fully committed to the 12.5% rate which it regards as an essential element of this country’s economic strategy.