Given how much Ireland’s economy does depend on FDI, some economists say Chinese investment in Ireland can be seen as a welcome insurance policy in case some US firms pull out.
“There is a huge pressure on US tech companies to re-domicile and re-invest in the US,” says Constantin Gurdgiev, an economist at Trinity College Dublin and the University of Northern Colorado.
Meanwhile, other European countries, such as Poland, Estonia, Slovakia, and Malta, have made inroads in courting US investments, presenting Ireland with new competition from countries with cheaper housing and less rain.
Dr Gurdgiev also points to “the forever-looming threat of global corporate tax reforms”, further eroding Ireland’s low corporation tax. The country has already signed up to Organisation for Economic Co-operation and Development rules, and as a result, this year introduced, external a 15% corporation tax rate for firms with an annual turnover of more than €750m ($835m; £625m).
And earlier this month, the European Court of Justice ruled that Apple had to pay Ireland €13bn in unpaid taxes. It followed after the European Commission accused Ireland of giving Apple illegal tax advantages.
Dublin consistently argued against the need for the tax to be paid, but said it would respect the ruling.
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Publish date : 2024-09-29 16:23:00
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