NI Corporation tax cut would create 58000 jobs

In the week that it was confirmed that unemployment in Northern Ireland had increased despite falling in the UK overall, a research paper commissioned by the Department for Employment and Learning has suggested cutting the rate of corporation tax in Northern Ireland would create 58,000 new jobs.

The Treasury is expected to make a decision by the summer on whether or not to devolve powers to vary the rate of corporation tax to Stormont in Northern Ireland. The rate of corporation tax in just 12.5% in the Republic of Ireland, a half of the rate in Northern Ireland, and for sometime now there has been debate about the need to alter the rate of tax in the North so as not to miss out on foreign investment opportunities. Invest NI says the Republic of Ireland currently secures 2.5 times as much external investment than Northern Ireland and supports a cut in the rate of corporation tax.

The report predicts that half of the 58,000 jobs that would be created by a lower rate of tax would be a direct result of foreign investment, while the other half would be a result of existing local companies that would have improved finances as a result of their lower tax bill.

If you manage or own a company in Northern Ireland and require commercial or company law advice, contact one of the commercial solicitors at Wilson Nesbitt in Belfast or Bangor by calling 0800 840 9295.

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