Question about US IT Multinational companies

tinytobe

Just wondering, about US IT multinationals, like Meta, Google, Microsoft, Salesforce, etc.... Do they get subsidies from the Irish government to come to Dublin? Do they also get further corporation tax breaks as well?

Mrs OBumble

https://www.boards.ie/discussion/2058334418/question-about-us-it-multinational-companies

They certainly can use IDA programmes for jobs created.

And they have excellent tax advisors who will find every possible option.

tinytobe

https://www.boards.ie/discussion/comment/121714872#Comment_121714872

But are corporation taxes in Ireland really that good and attractive for the US IT companies in Dublin? Also it seems the US IT sector in Dublin has a rather high turn over of employees of people with foreign language skills. Lot's of people coming and going.

Former Former Former

https://www.boards.ie/discussion/comment/121714901#Comment_121714901

What’s your question?

They hire people with foreign language skills because you need that in an EU HQ. People come and go because that’s what people do in the early years of their careers.

They get the same tax breaks as everyone else.

tinytobe

https://www.boards.ie/discussion/comment/121714948#Comment_121714948

Well, why Ireland? I'd say the Benelux region could be of equal interest to them.

The question is also are they getting even more than the already low corporation tax rate in Ireland?

Mrs OBumble

Ireland because English is the language here. And because we have a shared history of English colonialisation. And so their execs can get company funded trips to see the leprechauns.

Jim2007

https://www.boards.ie/discussion/comment/121714963#Comment_121714963

What has this got to do with your work situation or job seeking?

tinytobe

What I'd be interested to know is that if a US multinational IT company comes to Ireland and they create jobs, they do get financing from the Irish government. These finances are often tied to the number of jobs they create in Ireland. This all happens on top of the low corporation tax rate in Ireland.

Is there an overview of this? Like which IT company in Dublin has to create what number of jobs to receive financing from the Irish government?

And what happens if they have layoffs in Ireland? Like they did in the beginning of 2023? Would they be obliged to re-pay something to the Irish government?

Or is this all a big secret?

https://www.boards.ie/discussion/comment/121741815#Comment_121741815

You're looking at it the wrong way around, the tech companies you referenced are vastly profitable they don't depend on some subsidy from the government it is not a case of company y letting go x amount of employees equals they have to refund the IDA, the tech companies are here for complex legal, taxation, and employment reasons.

Another point you are missing is the vast ecosystems surrounding the tech companies for example big legal firms and facilities companies.

No one ever seems to ask why the French and German financial companies with large numbers of employees in Dublin don't operate from France or Germany.

tinytobe

https://www.boards.ie/discussion/comment/121741938#Comment_121741938

I'd say they are more profitable of operating in Ireland. Less corporation taxes than anywhere else, IDA help in form of financials, an English speaking legal system, absence of strong trade unions and the interest of their own share holders and investors.

And the rest of the eco-system are the high rents, and young people ready to pay any fortune for just a room in shared housing, the hospitality sector, restaurants, where they go out spend their money.

From the Irish government's finance position it's a win win situation, even with financial IDA help, the tax intake is still good.

And then there is most likely the odd lobbying of the US Americans of Irish descent in the US wishing their ancestral home economically well...

All factors, I believe.

https://www.boards.ie/discussion/comment/121742136#Comment_121742136

That's modern capitalism.

I don't see the point you are making.

Geuze

https://www.boards.ie/discussion/2058334418/question-about-us-it-multinational-companies

No and no.

However, they will employ very well paid accountants and lawyers to exploit USA tax laws in order to minimise their CT bills.

Geuze

https://www.boards.ie/discussion/comment/121714963#Comment_121714963

No.

Geuze

https://www.boards.ie/discussion/comment/121741815#Comment_121741815

Grants for employment happened years ago.

I haven't heard of it in years.

The IDA Annual Report is public:

https://www.idaireland.com/getmedia/d6da391a-6b34-4a85-b49b-2ed4d64e29d8/IDA-Ireland-Annual-Report-Accounts-2022.pdf?ext=.pdf

There are Govt-supported scheme run by the IDA, for example:

Geuze

Maybe I spoke too soon. There does seem to be some IDA grants. See table below.

5,582 spent on grants per Job Sustained.

Geuze

The IDA paid out 124m on grants in 2022:

Geuze

Here is some details on IDA grants payable:

tinytobe

It's IDA grants spent per jobs sustained as the ratio here. And jobs sustained brings more knock on business and tax intake.

Just wondering which US-IT companies gotten the most IDA grants.

To clarify, I am not criticizing the system I am trying to understand it. It's just economic politics at play.

CalamariFritti

I dont know details but when they set up shop and create jobs they'll get substantial grants. And they cant just leave or sack half the workforce 3 years later. Those grants are tied to 10, 20 year commitments. These are just snippets I picked up where I work. Never dug into details cos was never really of any concern to me. But I can confirm in those broad strokes that substantial grants are in play. Pretty sure the t&c's would be publicly available information, too, if you know where to look or who to ask.

paddyisreal

It's simple really. English speaking and access to the EU. Kind of unique if you think about it !

Mrs OBumble

No one ever seems to ask why the French and German financial companies with a large number of employees in Dublin don't operate from France or Germany.

Labour law is part of it. Workers rights in France and Germany mean some large firms try never to hire there if there are other options.

https://www.boards.ie/discussion/comment/121742488#Comment_121742488

I doubt that they have been here for decades yet you rarely hear anyone asking how come x French or German bank have offices here employing a large amount of people.

Jim2007

https://www.boards.ie/discussion/comment/121741815#Comment_121741815

Well that is not what this forum is about, so I’m not sure you’ll find many with details to contribute to your search… Maybe think about asking in Economics, Public Policy or Current Affairs and so on.

AndrewJRenko

https://www.boards.ie/discussion/comment/121717342#Comment_121717342

Time zone is a big issue too. We have a two hour overlap with west coast USA. That overlap reduces or dissappears as you go further east.

https://www.boards.ie/discussion/comment/121742488#Comment_121742488

Have you got any links for that?

There are perhaps posters who have anxiety around employment and online forums can amplify that so therefore anything posted about work or employment should be factual and accurate.

Mrs OBumble

https://www.boards.ie/discussion/comment/121744357#Comment_121744357

There's some info about German rights here: https://boundlesshq.com/guides/germany/leave/

Some very obvious differences: six WEEKS paid sick leave, compulsory for employers to recognise unions, formal works councils, restrictions on redundancy, compulsory consultstion periods, minimum two weeks notice if you're let go during probation. I suspect there's a lot more if you dig into the details.

France is similar, maybe even stronger.

https://boundlesshq.com/guides/france/hours-of-work/#:~:text=French%20law%20is%20very%20strict,specified%20on%20the%20collective%20agreement.

Maximum 44 hours work per week. Night work no more than 8 hours in 24. Compulsory to have works councils in sites with 50+ employees, standard work week is 35 hours, overtimeafter that. Legal right to disconnect.

https://www.boards.ie/discussion/comment/121745706#Comment_121745706

What has that to do with Europe finincial institutions who have been in Ireland for decades?.

Mrs OBumble

https://www.boards.ie/discussion/comment/121745787#Comment_121745787

If they hired the staff in their German or French offices, they would be constrained by German or French labour laws. Irrespective of how long they'd operated in other countries will less stringent laws.