Taoiseach pledges corporate tax ‘will remain at 12.5%’

Taoiseach Enda Kenny has reasserted his position on Ireland’s corporate tax rate saying: “ It will remain at 12.5 per cent irrespective of any pressures from other countries.”

In a speech made at the SXSW Interactive event on Sunday he also called for greater economic ties between Ireland and the city of Austin and Texas more generally.

“Texas, as the export state, is interested in building a business environment that is attractive and magnetic for people from all over the US and beyond to come and do business in. We want to be part of that ourselves.”

At an event where start ups and entrepreneurs make up the bulk of attendees, Mr Kenny emphasised the ease of doing business in Ireland. “Start up activity in Ireland is at a record high, and it’s never been easier to form companies and access the relevant organisations and groups who are involved in all of this,” he said. “We also have the fastest proportion of science and engineering graduates in the OECD.”

Irish start-ups at SXSW

After meeting with the 17 start ups brought to the SXSW Interactive event by Enterprise Ireland, Mr Kenny made a brief speech where he gave details of his meeting with the newly elected governor of Texas, Greg Abbott, who has been officially invited to Ireland. "There's already lots of engagement between our young cauldron of entrepreneurial innovative spirit and what's happening here in Austin," he said.

“Opening a consulate general’s office here is a first and we expect our presence here in the hub of Austin will generate business both ways which we recognise as being very important.”

Mr Kenny went on to list the reasons to do business in Ireland including being the only English-speaking euro zone country, “barrier-free access” to the European market, and the corporate tax rate. “We are committed to maintaining our 12.5 per cent corporate tax rate - which has been the cornerstone for investment in Ireland for many years. It hasn’t moved up and hasn’t moved down. It will remain at 12.5 per cent irrespective of any pressures from other countries.”