Bernard Durkan (Kildare North, Fine Gael)
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58. To ask the Minister for Jobs, Enterprise and Innovation the extent to which the knowledge development box continues to be an asset in securing investment in jobs here; and if she will make a statement on the matter. [49787/17]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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Ireland was the first country world-wide to introduce an OECD compliant Knowledge Development Box (KDB) offering. The certainty, predictability and clear signal that this has sent to enterprise – including both Irish owned and foreign owned entities establishing and doing business from here - remains essential. This certainty has become even more important in the current dynamic and uncertain geopolitical landscape.

The KDB, introduced in Budget 2016 forms part of Ireland’s competitive offering to continue to attract foreign direct investment (FDI) and to support Irish owned companies to innovate and to compete effectively on international markets. The continuing imperative to establish Ireland as the best place in which to succeed in business is reinforced in our national Enterprise and Innovation strategies. Our aim is that Ireland will be recognised as the place where businesses are innovative, competitive and productive – leading to growth that is sustainable and results in employment opportunities and a higher standard of living for all. These strategies set out the framework for investment over the coming decade to ensure that Ireland remains equally attractive to foreign direct investment and to Irish entrepreneurs and growth businesses in the context of an intensely competitive international environment.

The Knowledge Development Box provides an effective 6.25% rate of corporation tax on profits from certain qualifying assets that are earned by a company, chargeable to corporation tax in the State, to the extent that the assets relate to R&D undertaken by that company.  Ireland’s KDB effective rate is internationally competitive.

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.

As a key part of Ireland's competitive offering as a location of choice from which to do business, the KDB has helped secure investment since its introduction in 2016. It will continue to form part of Ireland's proposition and stimulate further investment in R&D activities by both Irish and foreign owned enterprises - ultimately delivering jobs and economic substance in Ireland.