Ireland is an ideal location for Intellectual Property (IP). It is particularly beneficial if there is an opportunity to locate the IP in Ireland prior to commercialisation or while the company is going through FDA or other such approved processes.
In addition, there are substantial fiscal incentives for companies with ongoing R&D facilities in Ireland. A key aspect of these incentives is the Government support, which is a 25% tax credit on the cost of eligible R&D in Ireland. There is also significant collaboration between industry and third-level institutions that companies find of tremendous benefit.
Furthermore, the Irish Government has made a clear commitment to support the R&D sector in its strategy for science, technology and innovation in Ireland. This support has contributed to the continuing growth in the area over the past decade, as evidenced by the presence of IBM, Boston Scientific, Intel, Pfizer, and Paypal, among others.
Ireland is seen as an attractive holding company location. Ireland provides a tax exemption on capital gains where an Irish holding company disposes of shares in another company (the investee company), provided the Irish holding company meets certain criteria.
As a holding company location, Ireland is of particular benefit for China, Japan and Korea.
An existing client recognised the benefits of Ireland’s holding company regime and established an Irish subsidiary to hold the shares of several group companies in a number of geographical locations, including China.
By locating a holding company in Ireland, the group benefits from an exemption from Chinese capital gains tax on disposal of the shares.