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Please do not hesitate to contact myself, any member of our team, or your usual PwC Ireland contact at any stage. We would be happy to tell you more about the topics raised in this issue or to include any interested parties on our mailing list.
Remember to visit our FDI website for more updates and detailed information, including a range of recent publications.
Welcome to the October 2019 edition of PwC’s newsletter on foreign direct investment (“FDI”) in Ireland.
A significant number of jobs and investment announcements over the last few months reflects continued FDI growth in Ireland (see page 2).
Budget 2020 was announced on 8 October, showing Ireland’s commitment to the 12.5% corporate tax rate and ongoing implementation of previously indicated EU/OECD tax measures (see page 4).
The issue also looks at Irish-US business relations which continue to grow (see page 5). Ireland also maintains its number one ranking in a number of key areas (see page 7) and we highlight a number of key business events taking place in Ireland (see page 6).
Liam Diamond
+353 1 792 6579+353 86 405 [email protected]
www.pwc.ie/fdi
Investing in Ireland Issue 40, October 2019
1
Recent FDI investment announcements
AB Agri, the agricultural division of the Associated British Foods group, announced plans to establish a technology centre in Kilkenny which will see the creation of 50 new jobs over 5 years
ActiveCampaign, an email marketing business, opened a Dublin office that expects to hire more than 200 people as customer growth in Europe accelerates
Amazon, an American multinational technology company, announced plans to develop a wind farm in Cork. Once operational, the new Amazon Wind Farm will provide 23.2 megawatts (MW) of renewable capacity, with expected generation of 68,000 megawatt hours (MWh) of clean energy annually
Boston Scientific, a manufacturer of medical devices, announced its expansion into Ballybrit with the development of an industry leading Equipment Technology Centre and an investment of €60m, creating over 250 new jobs by the end of 2019
ClickDimensions, a leading marketing technology service provider, announced the opening of its new European Customer Operations Centre of Excellence in Cork, announcing plans to grow its employee headcount from 22 people to 50 people over the next 2 years
DMS Governance, a global governance, risk, and compliance company, announced plans to increase its Irish workforce, creating an additional 50 jobs in Cashel, Tipperary
eBay, an American multinational e-commerce corporation, announced a partnership with the IDA to bring further job creation to the North East and North West through their new eBay@Home programme
Emerald Contact Centre, a customer care and sales support provider, announced the opening of their new office in Waterford, creating 200 new jobs over the next 3 years
Hermes Investment Management, an asset management company, announced the opening of its new Dublin office, creating 11 new financial service roles
Jacobs, a provider of technical, professional and construction services, announced plans to create 200 new jobs in Ireland over the next 2 years as it unveiled a €4.5 million investment in their office in Cork
LinkedIn, the social networking site, announced plans to create 800 new jobs, bringing its headcount in Dublin to 2,000 people by summer next year
MessageBird, a service which connects companies to their customers on billions of devices, announced the opening of its newest office in Dublin, creating 50 new positions over the next 2 years
MSD, one of Ireland’s leading healthcare companies, has been granted planning permission for the construction of a new facility in Carlow
Natus Medical Incorporated, a leading provider of healthcare products, announced the expansion of operations in Gort, Galway with an official opening of a new distribution centre located in the IDA Business Park
Nitro, a global company specialising in document productivity solutions, announced the opening of its new EMEA headquarters in Dublin, creating 70 additional jobs over the next 2 years
Opus Fund Service, a global fund administrator, has announced the expansion of its Irish operations with a new office set up in Wexford, creating 100 jobs
Security Risk Advisors, a US cyber security consulting company, announced plans to establish its headquarters in Kilkenny, creating 52 jobs over the next 5 years
Stryker, a medical technology firm, announced the opening of its Digital Platform Services Centre of Excellence in Dublin, and a strategic collaboration with RCSI to develop digital solutions for use in emergency and specialist care settings. Stryker also announced plans to invest over €200 million in Research, Development and Innovation (RD&I) projects at three of its five Cork facilities
Wix.com, the cloud-based web development platform, announced the opening of its Dublin customer support centre to further enhance its global support infrastructure and international footprint
Takeda Ireland, a pharmaceutical company, celebrated the opening of its new innovative manufacturing site in Grange Castle
Toast, the fastest-growing restaurant manager platform in the U.S., announced the opening of its new office in Dublin and plans to grow its headcount, creating 120 new roles focused on new product development
The Agora Companies, a consortium of more than 40 media businesses, announced plans to create 135 new jobs in Waterford
Xperi Corporation, a licensor of technology and intellectual property, celebrated the opening of its new Galway office and announced plans to expand its innovative R&D Team through an increased investment in Ireland
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“We have built up a strong foundation in Ireland over the past 17 years, and this new plant in Grange Castle is an important strategic site for us, as it is not only the first overseas manufacturing centre for APIs outside of Japan, but it houses all the steps of the production process.” Christophe Weber, CEO of Takeda Pharmaceutical
“Our growth in Ireland continues at a phenomenal pace, both as an employer, but also as a platform that two million Irish professionals have come to rely on to develop their careers and find their next job. Our Irish office has become our second largest office in the world, after our global HQ, and our Irish members are some of the most active and engaged on our platform.”Sharon McCooey, Head of LinkedIn Ireland
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Budget 2020
Budget 2020 was delivered on 8 October against the backdrop of Brexit and other international economic challenges and ongoing tax reform measures. Ireland’s Minister for Finance and Public Expenditure and Reform, Mr. Paschal O’Donohoe T.D., put forward a cautious and conservative budget with the aim of maintaining Ireland’s attractive employment and investment environment.
The Minister reiterated that Ireland’s competitive 12.5% corporation tax rate has “served us well and will not be changing”. The certainty of rate and regime are recognised as important factors in promoting continued investment in Ireland.
Positive measures to support entrepreneurs and early-stage companies have also been announced in Budget 2020, including an increase in the R&D tax credit from 25% to 30% to encourage micro companies to invest in R&D activities. An extension to the Special Assignee Relief (“SARP”) programme which offers significant income tax savings to qualifying inbound secondees was also announced.
In line with Ireland’s Corporation Tax Roadmap published by the Government in 2018, Budget 2020 restated that the Anti-Tax Avoidance Directive (ATAD) Hybrid Mismatch provisions will be implemented by 1 January 2020. Ireland’s transfer pricing rules will also
be amended to transcribe the latest OECD 2017 Transfer Pricing Guidelines into Irish legislation.
Ultimately, the focus of Budget 2020 is to safeguard the economic progress that Ireland has made in recent years by ensuring the sustainability of the public finances and continuing to ensure Ireland has a competitive tax regime which is legitimate, transparent and sustainable.
Budget 2020 highlights:
• Corporation Tax rate remains at 12.5%.
• R&D tax credit increase from 25%-30% for micro companies.
• Extension to SARP relief for inbound secondees.
• New Anti-Tax Avoidance Directive compliant anti-hybrid rules from 1 January 2020.
• Amendments to modernise Ireland’s Transfer Pricing rules.
• Stamp Duty increase on Non-Residential Property from 6%-7.5% for transfers executed on or after 9 October 2019.
• Dividend Withholding Tax increase from 20% to 25% to be implemented from 1 January 2020.
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The American Chamber of Commerce (“AMCHAM”) in Ireland saw the launch of its annual flagship report, ‘US-Ireland Business 2019’, earlier this year.
The report highlights the strong relationship between Ireland and the US, which is proven by the presence of over 700 US companies in Ireland employing over 155,000 employees and investing a total of $446 billion. The strong relationship flows both ways with over 800 Irish companies active in the US employing over 100,000 people.
The AMCHAM report includes an economic report titled ‘Irish-US Linkages - An Enduring Transatlantic Partnership’ written by Wall Street Economist Joseph Quinlan. Quinlan notes the deeply integrated ties between the US and the EU, with Ireland in particular acting as a key hub for the US transatlantic economy that generates approximately $5.5 trillion in commercial sales each year.
In 2018, Ireland emerged as one of the fastest growing economies in the world, with the economy expanding by 5-6%. Ireland and the US both stand as two of the strongest growing economies in the world.
Quinlan highlighted in his report just some of the reasons why Ireland has become a popular choice not just for US investment, but also for global inward FDI -
• Ireland’s economy is healthy and growing, with Ireland currently holding a position as being a growth leader in the EU
• Ireland’s continued commitment to its membership of the EU, the wealthiest and largest economic bloc in the world
• Ireland has one of the most educated workforces in the world, according to the OECD, with 53% of workers between the age of 25-34 holding a third level qualification, almost 10% higher than the OECD average
• Ireland is one of the most diverse countries in the EU, according to Ireland’s Economic & Social Research Institute, with 17% of the population having been born in another country
• Ireland is among one of the most successful nations in the world for encouraging high-value-added enterprises in areas such as data electronics, computer software, finance, and medical and healthcare technologies
17 of the top 20 global software companies
14 of the top 15 medical technology companies
9 of the top 10 US technology companies
20 of the top 25 financial services companies
10 out of the top 10 pharmaceutical companies
8 out of the top 10 industrial automation companies
Ireland is home to
Ireland – US business
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FDI news & events Investing in Ireland awards
This year will mark the second year of the Investing in Ireland Awards which aim to celebrate excellence in all areas of FDI, including the use of R&D, regional investment, CSR initiatives, staff upskilling, and commitment to diversity. The awards will be hosted in the Mansion House, Dublin on Thursday 18 October 2019.
NASA Global Hackathon
Every year NASA hosts the world’s largest hackathon which sees teams from around the globe compete using data provided by NASA. Participants are tasked with creating open-source solutions to the challenges of living on Earth and in Space. The NASA International Space Apps Challenge take place at more than 100 locations around the globe – including Dublin – from the 18 October to the 20 October 2019.
Technology Ireland Industry awards
Technology Ireland, an association within the Irish Business and Employers Confederation (“IBEC”), which represents the technology sector has launched their 27th annual Software Industry Awards. Some of the categories include, digital technology company of the year, technology innovation of the year, and women in technology. The awards ceremony will take place in the Mansion House, Dublin on Friday 22 November 2019.
Business and Finance awards
The Business and Finance awards are the longest running and most coveted business awards programme in Ireland and have been recognising excellence in Irish business for over 45 years. The awards celebrate the success of FDI companies and their contribution to Irish business. The awards will take place at The Convention Centre Dublin, on Thursday 12 December 2019.
Women in Finance awards
The Women in Finance awards, Europe’s largest diversity initiative, came to Ireland on 26 June 2019. Already established in London, the Women in Finance awards is Europe’s largest diversity initiative recognising the high-achievers, advocates, and role models for women in the sector. This event, hosted at Clontarf Castle, rewarded the exceptional achievement of women across a range of finance sectors, from the world of venture capital and banking to accountancy and corporate law.
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Leading the way
Ireland economic update
in the world for:• Attracting high value projects,
based on volume of job creation2
• City with the highest economic potential (Dublin)3
• Business friendliness (Dublin)3
• FDI and technology transfer4
1st
in the Eurozone for:• FDI Global City of the Future
(Dublin)3
• Relationship of pay to productivity4
• Attracting talented people from abroad4
1st
in Europe for:• Real GDP growth1
• Investment incentives that are attractive to foreign investors1
• Paying business taxes8
• Flexibility and adaptability1
• Value added of Knowledge and Technology Intensive industries1
• Secondary school enrolments1
• Science, technology, engineering, and mathematics (“STEM”) graduates5
• SMEs selling online, e-commerce turnover, cross-border SMEs online and open data5
• Innovators in SMEs, employment impacts, and sales impacts6
• Life sciences (Dublin)7
• High value exports4
1st
1 IMD World Competitiveness yearbook 2018
2 IBM Global Trends 2018
3 Global Cities of the Future 2018/19 – FDI Intelligence
4 The Global Talent Competiveness Index 2019
5 The Digital Economy and Society Index (“DESI”) Report 2018
6 European Innovation Scoreboard 2018
7 The world’s most competitive cities report 2018
8 PwC/World Bank Group “Paying Taxes” Report 2019
Irish exports of goods has increased by 14.9% compared to this time last year
GDP is expected to grow by 4.1% in 2020
The unemployment rate is projected to decline from 4.7% in 2019 to 4.5% in 2020
Approximately 229,057 people were employed by FDI companies by the end of 2018
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Should any of the topics covered in this newsletter be of particular interest to you, please do not hesitate to contact any member of the FDI team, or your usual PwC Ireland contact. If any of your colleagues would like to be included on our mailing list, please let us know.
Please click on our website for additional information. Various topics of interest for foreign investors can be found in the publications link in the tax section, including:
Budget 2020
Brexit
CEO Survey
Previous issue of Investing in Ireland
Tax Facts 2019
Would you like to know more?
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
© 2019 PricewaterhouseCoopers. All rights reserved. PwC refers to the Irish member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. 06605
Contacts
Jean Delaney +353 1 792 6280 [email protected]
Liam Diamond +353 1 792 6579 [email protected]
Brian Leonard +353 1 792 6179 [email protected]
Denis Harrington +353 1 792 8629 [email protected]
Andy O’Callaghan +353 1 792 6247 [email protected]
Mary Honohan +353 1 792 8609 [email protected]
Susan Kilty +353 1 792 6740 [email protected]
Ronan MacNioclais +353 1 792 6006 [email protected]
Joe Tynan +353 1 792 6399 [email protected]
James McNally +353 1 792 6844 [email protected]
John O’Leary +353 1 792 8659 [email protected]
Feargal O’Rourke +353 1 792 6480 [email protected]
Garrett Cronin +353 1 792 8807 [email protected]
www.pwc.ie/fdi
