Bernard Durkan (Kildare North, Fine Gael)
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67. To ask the Minister for Jobs, Enterprise and Innovation the extent to which he expects the knowledge development box to facilitate ongoing investment in job creation; and if he will make a statement on the matter. [38578/15]

Richard Bruton (Dublin North Central, Fine Gael)
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A competitive, innovative enterprise base is at the core of Ireland’s future economic development and growth. As part of the co-ordinated whole of Government Action Plan for Jobs process, the recovery in jobs and exports to date is in large part due to the considerable improvements in the business environment for enterprise. The enterprise sector has led the economic recovery, with our enterprises and entrepreneurs innovating, developing and improving their products and services to meet the needs of customers in markets across the globe. I expect that the measures announced by the Minister for Finance in Budget 2016 last month, including the introduction the first OECD compliant Knowledge Development Box will further strengthened the attractiveness of Ireland as a place for innovation, entrepreneurship and investment – delivering sustainable job creation and growth.

By being the first country world-wide to offer an OECD compliant Knowledge Development Box (KDB), Ireland is offering certainty to global and Irish owned enterprises. Ireland’s KDB rate is 6.25 percent (half of the corporation tax rate of 12.5 percent) is internationally competitive.

The Knowledge Box, as announced in the 2016 Budget speech, will support and encourage investment in research and development in Ireland and the increased the protection and exploitation of intellectual property arising. The OECD nexus approach sets out the principles and guidelines under which income arising from IP assets can qualify for a lower rate of tax under a KDB initiative.

The KDB complements the existing suite of initiatives and supports available to companies that undertake R&D activities in Ireland across the lifecycle of research and development – including R&D tax credits, RD&I grant supports, support for technology acquisition (S291A), significant state investments in National Research Centres and knowledge transfer infrastructures, and advisory supports for accessing Horizon 2020 funding – providing a competitive proposition for business investment.