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National Recovery Plan 2010-2014
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- 25/11/2010
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National Recovery Plan 2010-2014
Yesterday, the 24th of November 2010, the Irish Government published their 4 year National Recovery Plan. In this plan, the Government sets out the steps they consider necessary to overcome the economic difficulties the country is currently facing and to set us on the path to economic recovery and sustainable growth.
Everybody in this country will be impacted by the measures set out in the plan. There is no doubt that standards of living will need to be adjusted to take account of the many austerity measures contained within it.
However, there are also many positives to take from the national plan and now, more than ever, it is important that we focus on these. One such positive is the recognition, by the Government, of the contribution that Foreign Direct Investment (FDI), Innovation and R&D has made to this economy, and the integral part each has to play in its recovery. The commitment to continue to support these activities was very welcomed news.
The National Recovery Plan is a clear statement of intent to position Ireland as the Knowledge Economy on the international stage. The mixture of tax measures (i.e. protection of our 12.5% corporation tax rate, the continuation of tax reliefs that incentivise FDI, Innovation and R&D) and other measures (i.e. the creation of an innovation fund, the continuation of innovation vouchers and other enterprise supports) show that the importance of a cohesive, holistic approach to achieving this economy has been recognised.
The following paragraph from the National Recovery Plan clearly shows the Government’s commitment to the Knowledge Economy:
“The Government’s commitment to the maintenance of a competitive and transparent corporation tax offering has been steadfast over the last three years. Notwithstanding the very real challenges, we have continued to evolve the regime to support the knowledge economy. We have used the tax system to support research and development, the acquisition and exploitation of intellectual property, new start-up companies and to improve corporation energy efficiency. We have also maintained our competitive position in International Financial Services. These changes have resulted in continued investment in Ireland by multinational companies that see this country as a good place to do business. We will continue to work with business for the delivery of employment that will be the lifeblood of our economic recovery thereby copper-fastening our ability to meet our financial obligations as a State.” (Section 6.11 – Corporation Tax, page 100)
We now await the budget on December 7th for further details on the measures set out in the National Recovery Plan.
Please click here to read Leyton’s full R&D Tax Credit Budget Recommendations.