Ireland’s Success in Budget Target Reduction and other news
Ireland hits 2011 budget target
Good news for Ireland as the EU/IMF praised the nation for reducing its budget targets despite a drop in revenues generated from sales tax.
Fiscal targets were met as the government reined in expenditures, which dropped 1% below the budget.
Overall, the government’s budget shortfall actually increased to 24.9 billion Euros from 18.7 billion, but this was largely due to a 11 billion capital injection intended to boost a sagging domestic economy.
The IMF dictates that Ireland ought to shrink its deficit to 8.6% of GDP this year, but this is expected to be a challenge given the prospect of a looming European recession. Read more about Ireland’s budget results on reuters.com
While Ireland will face the challenges that the rest of the European region will face, this jurisdiction has some advantages for entrepreneurs wanting to set up a company in a tax efficient jurisdiction within Europe. Ireland has one of the lowest corporate tax rates in the European Union (EU) at 12.5%. There are also tax exemptions based on meeting certain criteria.
Read more about the advantages of Ireland company formation