Stephen Donnelly (Wicklow, Social Democrats)
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108. To ask the Minister for Finance to outline his views on the rapidly increasing commercial rents in Dublin; and his views on whether the proposed new tax breaks for commercial property in the Finance Bill will drive these rents higher. [33408/16]

Michael Noonan (Limerick City, Fine Gael)
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This proposed Irish Real Estate Fund is not a tax incentive for people investing in commercial property. Under the proposal, payments from the IREF made to non-resident investors will be subject to a new 20% withholding tax. All rental income and development profits earned by the IREF will be included in the calculation of the IREF's profits. Where an IREF makes a distribution of these profits, non-resident investors will be subject to a withholding tax of 20%. The proposal has been drafted in a balanced way to ensure that the Irish tax base is protected where Irish property transactions are taking place within collective investment vehicles whilst not damaging the commercial property market in the long term.