Ireland has signed comprehensive double taxation agreements with 62 countries, of which 49 are in effect.

New agreements with Georgia, Moldova, Serbia and Turkey have recently come into force and will be effective from 1 January 2011. New agreements were signed with Hong Kong, Kuwait, Montenegro, Morocco, Singapore and the United Arab Emirates and are awaiting legal procedures to be completed before coming into effect. (All of these treaties have immediate effect in Ireland under domestic law once signed).

Negotiations for new agreements with Armenia, Panama, Singapore, Saudi Arabia, Thailand, a new agreement replacing the existing treaty with Germany and negotiations on Protocols to the existing agreements with Belgium and Switzerland have been concluded and are expected to be signed shortly.

Research support – new competence centres in microelectronics and nanotechnology

As part of its strategy to support the semiconductor/microelectronics industry, the Government recently launched two new competence centres, namely the Microelectronics Competence Centre Ireland and the Applied Nanotechnology Centre. Both centres, whose research programmes will be determined by corporate members (rather than universities), will undertake leading edge, commercially focused research to support the industry.

International mobile employees

The past 3 years have seen some significant developments for internationally mobile employees, including:

  • a useful concession on the VAT treatment of charges in respect of seconded staff from related foreign companies;
  • changes to the tax-free subsistence arrangements available for employees assigned to work temporarily in Ireland;
  • the introduction of the new Special Assignment Relief Program ("SARP") with effect from 2009 and its extension to employees from EEA countries with effect from 2010;
  • the overhaul of the social security rules governing intra-EU secondments with effect from 1 May 2010.

Employers can generate significant savings by taking advantage of cost control opportunities which the Irish tax system may offer for incorporation into their corporate international assignment policies. More detailed information can be obtained at www.pwc.com/ie/hrs .

Ireland No.1 for FDI

Ireland is ranked as the number one destination globally for jobs by inward investment per capita. The IBM 2010 Global Location Trends Report highlights that significant gains in inbound investment were achieved, particularly as a result of the country's strengths in Services and R&D. Overall, Ireland created more FDI jobs per capita in 2009 than any other country, almost 2 jobs for every 1,000 inhabitants.

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