INVESTING IN IRELAND ISSUE 40, OCTOBER 2019 - PWC
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www.pwc.ie/fdi
Investing in Ireland
Issue 40, October 2019
Welcome to the October 2019 edition of PwC’s Please do not hesitate to contact myself, any member
newsletter on foreign direct investment (“FDI”) in of our team, or your usual PwC Ireland contact at any
Ireland. stage. We would be happy to tell you more about the
topics raised in this issue or to include any interested
A significant number of jobs and investment
parties on our mailing list.
announcements over the last few months reflects
continued FDI growth in Ireland (see page 2). Remember to visit our FDI website for more updates
and detailed information, including a range of recent
Budget 2020 was announced on 8 October, showing
publications.
Ireland’s commitment to the 12.5% corporate tax rate
and ongoing implementation of previously indicated
EU/OECD tax measures (see page 4).
The issue also looks at Irish-US business relations
which continue to grow (see page 5). Ireland also
maintains its number one ranking in a number of key
areas (see page 7) and we highlight a number of key
business events taking place in Ireland (see page 6).
Liam Diamond
+353 1 792 6579
+353 86 405 6965
liam.diamond@pwc.com
1
Recent FDI investment
announcements
AB Agri, the agricultural division of the Associated MSD, one of Ireland’s leading healthcare companies,
British Foods group, announced plans to establish a has been granted planning permission for the
technology centre in Kilkenny which will see the construction of a new facility in Carlow
creation of 50 new jobs over 5 years
Natus Medical Incorporated, a leading provider of
ActiveCampaign, an email marketing business, healthcare products, announced the expansion of
opened a Dublin office that expects to hire more than operations in Gort, Galway with an official opening of a
200 people as customer growth in Europe accelerates new distribution centre located in the IDA Business
Park
Amazon, an American multinational technology
company, announced plans to develop a wind farm in Nitro, a global company specialising in document
Cork. Once operational, the new Amazon Wind Farm productivity solutions, announced the opening of its
will provide 23.2 megawatts (MW) of renewable new EMEA headquarters in Dublin, creating 70
capacity, with expected generation of 68,000 megawatt additional jobs over the next 2 years
hours (MWh) of clean energy annually
Opus Fund Service, a global fund administrator, has
Boston Scientific, a manufacturer of medical announced the expansion of its Irish operations with a
devices, announced its expansion into Ballybrit with the new office set up in Wexford, creating 100 jobs
development of an industry leading Equipment
Security Risk Advisors, a US cyber security
Technology Centre and an investment of €60m,
consulting company, announced plans to establish its
creating over 250 new jobs by the end of 2019
headquarters in Kilkenny, creating 52 jobs over the next
ClickDimensions, a leading marketing technology 5 years
service provider, announced the opening of its new
Stryker, a medical technology firm, announced the
European Customer Operations Centre of Excellence in
opening of its Digital Platform Services Centre of
Cork, announcing plans to grow its employee
Excellence in Dublin, and a strategic collaboration with
headcount from 22 people to 50 people over the next 2
RCSI to develop digital solutions for use in emergency
years
and specialist care settings. Stryker also announced
DMS Governance, a global governance, risk, and plans to invest over €200 million in Research,
compliance company, announced plans to increase its Development and Innovation (RD&I) projects at three of
Irish workforce, creating an additional 50 jobs in Cashel, its five Cork facilities
Tipperary
Wix.com, the cloud-based web development platform,
eBay, an American multinational e-commerce announced the opening of its Dublin customer support
corporation, announced a partnership with the IDA to centre to further enhance its global support
bring further job creation to the North East and North infrastructure and international footprint
West through their new eBay@Home programme
Takeda Ireland, a pharmaceutical company,
Emerald Contact Centre, a customer care and sales celebrated the opening of its new innovative
support provider, announced the opening of their new manufacturing site in Grange Castle
office in Waterford, creating 200 new jobs over the next
Toast, the fastest-growing restaurant manager
3 years
platform in the U.S., announced the opening of its new
Hermes Investment Management, an asset office in Dublin and plans to grow its headcount,
management company, announced the opening of its creating 120 new roles focused on new product
new Dublin office, creating 11 new financial service development
roles
The Agora Companies, a consortium of more than
Jacobs, a provider of technical, professional and 40 media businesses, announced plans to create 135
construction services, announced plans to create 200 new jobs in Waterford
new jobs in Ireland over the next 2 years as it unveiled a
Xperi Corporation, a licensor of technology and
€4.5 million investment in their office in Cork
intellectual property, celebrated the opening of its new
LinkedIn, the social networking site, announced plans Galway office and announced plans to expand its
to create 800 new jobs, bringing its headcount in Dublin innovative R&D Team through an increased investment
to 2,000 people by summer next year in Ireland
MessageBird, a service which connects companies
to their customers on billions of devices, announced
the opening of its newest office in Dublin, creating 50
new positions over the next 2 years
2
“Our growth in Ireland
continues at a phenomenal
pace, both as an employer,
but also as a platform that
two million Irish
professionals have come to
rely on to develop their
careers and find their next
job. Our Irish office has
become our second largest
office in the world, after our
“We have built up a strong foundation in Ireland over the past global HQ, and our Irish
17 years, and this new plant in Grange Castle is an important members are some of the
strategic site for us, as it is not only the first overseas most active and engaged
manufacturing centre for APIs outside of Japan, but it houses on our platform.”
all the steps of the production process.” Sharon McCooey, Head of LinkedIn
Ireland
Christophe Weber, CEO of Takeda Pharmaceutical
3
Budget 2020
Budget 2020 was delivered on 8 October against the be amended to transcribe the latest OECD 2017
backdrop of Brexit and other international economic Transfer Pricing Guidelines into Irish legislation.
challenges and ongoing tax reform measures.
Ultimately, the focus of Budget 2020 is to safeguard
Ireland’s Minister for Finance and Public Expenditure
the economic progress that Ireland has made in
and Reform, Mr. Paschal O’Donohoe T.D., put forward
recent years by ensuring the sustainability of the
a cautious and conservative budget with the aim of
public finances and continuing to ensure Ireland has a
maintaining Ireland’s attractive employment and
competitive tax regime which is legitimate, transparent
investment environment.
and sustainable.
The Minister reiterated that Ireland’s competitive
Budget 2020 highlights:
12.5% corporation tax rate has “served us well and
will not be changing”. The certainty of rate and regime • Corporation Tax rate remains at 12.5%.
are recognised as important factors in promoting
• R&D tax credit increase from 25%-30% for
continued investment in Ireland.
micro companies.
Positive measures to support entrepreneurs and early-
• Extension to SARP relief for inbound
stage companies have also been announced in
secondees.
Budget 2020, including an increase in the R&D tax
credit from 25% to 30% to encourage micro • New Anti-Tax Avoidance Directive compliant
companies to invest in R&D activities. An extension to anti-hybrid rules from 1 January 2020.
the Special Assignee Relief (“SARP”) programme • Amendments to modernise Ireland’s Transfer
which offers significant income tax savings to Pricing rules.
qualifying inbound secondees was also announced.
• Stamp Duty increase on Non-Residential
In line with Ireland’s Corporation Tax Roadmap Property from 6%-7.5% for transfers executed
published by the Government in 2018, Budget 2020 on or after 9 October 2019.
restated that the Anti-Tax Avoidance Directive (ATAD)
Hybrid Mismatch provisions will be implemented by 1 • Dividend Withholding Tax increase from 20%
January 2020. Ireland’s transfer pricing rules will also to 25% to be implemented from 1 January
2020.
4
Ireland – US business
The American Chamber of Commerce Quinlan highlighted in his report just some of
(“AMCHAM”) in Ireland saw the launch of its the reasons why Ireland has become a popular
annual flagship report, ‘US-Ireland Business choice not just for US investment, but also for
2019’, earlier this year. global inward FDI -
The report highlights the strong relationship • Ireland’s economy is healthy and growing,
between Ireland and the US, which is proven by with Ireland currently holding a position as
the presence of over 700 US companies in being a growth leader in the EU
Ireland employing over 155,000 employees and
• Ireland’s continued commitment to its
investing a total of $446 billion. The strong
membership of the EU, the wealthiest and
relationship flows both ways with over 800 Irish
largest economic bloc in the world
companies active in the US employing over
100,000 people. • Ireland has one of the most educated
workforces in the world, according to the
The AMCHAM report includes an economic
OECD, with 53% of workers between the
report titled ‘Irish-US Linkages - An Enduring
age of 25-34 holding a third level
Transatlantic Partnership’ written by Wall Street
qualification, almost 10% higher than the
Economist Joseph Quinlan. Quinlan notes the
OECD average
deeply integrated ties between the US and the
EU, with Ireland in particular acting as a key hub • Ireland is one of the most diverse countries
for the US transatlantic economy that generates in the EU, according to Ireland’s Economic
approximately $5.5 trillion in commercial sales & Social Research Institute, with 17% of the
each year. population having been born in another
country
In 2018, Ireland emerged as one of the fastest
growing economies in the world, with the • Ireland is among one of the most successful
economy expanding by 5-6%. Ireland and the nations in the world for encouraging
US both stand as two of the strongest growing high-value-added enterprises in areas such
economies in the world. as data electronics, computer software,
finance, and medical and healthcare
technologies
Ireland is home to
17 of the top 20 global 20 of the top 25 financial
software companies services companies
14 of the top 15 medical 10 out of the top 10
technology companies pharmaceutical companies
9 of the top 10 US 8 out of the top 10
technology companies industrial automation
companies
5
FDI news & events
Investing in Ireland awards Business and Finance awards
This year will mark the second year of the Investing in The Business and Finance awards are the longest
Ireland Awards which aim to celebrate excellence in all running and most coveted business awards
areas of FDI, including the use of R&D, regional programme in Ireland and have been recognising
investment, CSR initiatives, staff upskilling, and excellence in Irish business for over 45 years. The
commitment to diversity. The awards will be hosted in awards celebrate the success of FDI companies and
the Mansion House, Dublin on Thursday 18 October their contribution to Irish business. The awards will
2019. take place at The Convention Centre Dublin, on
Thursday 12 December 2019.
NASA Global Hackathon
Women in Finance awards
Every year NASA hosts the world’s largest hackathon
which sees teams from around the globe compete The Women in Finance awards, Europe’s largest
using data provided by NASA. Participants are tasked diversity initiative, came to Ireland on 26 June 2019.
with creating open-source solutions to the challenges Already established in London, the Women in Finance
of living on Earth and in Space. The NASA International awards is Europe’s largest diversity initiative
Space Apps Challenge take place at more than 100 recognising the high-achievers, advocates, and role
locations around the globe – including Dublin – from models for women in the sector. This event, hosted at
the 18 October to the 20 October 2019. Clontarf Castle, rewarded the exceptional achievement
of women across a range of finance sectors, from the
Technology Ireland Industry awards world of venture capital and banking to accountancy
and corporate law.
Technology Ireland, an association within the Irish
Business and Employers Confederation (“IBEC”),
which represents the technology sector has launched
their 27th annual Software Industry Awards. Some of
the categories include, digital technology company of
the year, technology innovation of the year, and women
in technology. The awards ceremony will take place in
the Mansion House, Dublin on Friday 22 November
2019.
6
Ireland economic update
GDP is expected to grow by 4.1% in 2020
The unemployment rate is projected to decline from 4.7% in 2019 to 4.5% in 2020
Approximately 229,057 people were employed by FDI companies by the end of 2018
Irish exports of goods has increased by 14.9% compared to this time last year
Leading the way
1st 1st
in the world for: in Europe for:
• Attracting high value projects, • Real GDP growth1
based on volume of job creation2 • Investment incentives that are attractive
• City with the highest economic to foreign investors1
potential (Dublin)3 • Paying business taxes8
• Business friendliness (Dublin) 3
• Flexibility and adaptability1
• FDI and technology transfer4 • Value added of Knowledge and
Technology Intensive industries1
• Secondary school enrolments1
• Science, technology, engineering, and
1st mathematics (“STEM”) graduates5
in the Eurozone for: • SMEs selling online, e-commerce
turnover, cross-border SMEs online and
• FDI Global City of the Future open data5
(Dublin)3
• Innovators in SMEs, employment
• Relationship of pay to productivity4 impacts, and sales impacts6
• Attracting talented people from • Life sciences (Dublin)7
abroad4
• High value exports4
1 IMD World Competitiveness yearbook 2018
2 IBM Global Trends 2018
3 Global Cities of the Future 2018/19 – FDI Intelligence
4 The Global Talent Competiveness Index 2019
5 The Digital Economy and Society Index (“DESI”) Report 2018
6 European Innovation Scoreboard 2018
7 The world’s most competitive cities report 2018
8 PwC/World Bank Group “Paying Taxes” Report 2019
7Would you like to know more? Should any of the topics covered in this newsletter be of particular interest to you, please do not hesitate to contact any member of the FDI team, or your usual PwC Ireland contact. If any of your colleagues would like to be included on our mailing list, please let us know. Please click on our website for additional information. Various topics of interest for foreign investors can be found in the publications link in the tax section, including: Budget 2020 Brexit CEO Survey Previous issue of Investing in Ireland Tax Facts 2019
Contacts
Jean Delaney Mary Honohan James McNally
+353 1 792 6280 +353 1 792 8609 +353 1 792 6844
jean.delaney@pwc.com mary.honohan@pwc.com james.o.mcnally@pwc.com
Liam Diamond Susan Kilty John O’Leary
+353 1 792 6579 +353 1 792 6740 +353 1 792 8659
liam.diamond@pwc.com susan.kilty@pwc.com john.oleary@pwc.com
Brian Leonard Ronan MacNioclais Feargal O’Rourke
+353 1 792 6179 +353 1 792 6006 +353 1 792 6480
brian.a.leonard@pwc.com ronan.macnioclais@pwc.com feargal.orourke@pwc.com
Denis Harrington Joe Tynan Garrett Cronin
+353 1 792 8629 +353 1 792 6399 +353 1 792 8807
denis.harrington@pwc.com joe.tynan@pwc.com garrett.cronin@pwc.com
Andy O’Callaghan
+353 1 792 6247
andy.ocallaghan@pwc.com
www.pwc.ie/fdi
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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