Feature Article
Annual Dinner 2018- Final Tickets Available

 

There are a small number of tickets still available for our Annual Dinner on 11th October. Over 1,500 business leaders will gather on the night to hear from urban planner and architect, Jan Gehl and Minister for Finance & Public Expenditure and Reform, Paschal Donohoe

 

Our President Anne O'Leary will also present the outputs of the National Conversation, which saw us host events in Limerick, Galway, Cork and Waterford to discuss the future of our city regions. The Annual Dinner is the premiere event in our calendar and is kindly sponsored by AIB, individual tickets and tables are available to book here or you can contact Carol carol@dublinchamber.ie for more details. 


Trade Mission to Hong Kong (13th- 18th January)
 

New direct flights between Ireland and Hong Kong by Cathay Pacific open up many new opportunities for Irish firms, the purpose of this mission is to identify new opportunities for companies in the lucrative Asian Market.  The mission is organised by Dublin Chamber and The Ireland Hong Kong Business Forum in partnership with the Consulate General of Ireland to Hong Kong and Macau and Hong Kong Trade Development Council. 

The programme will include networking activities and will be varied to include insights, site visits and activities across a number of sectors including Finance, Fintech, F&B and Smart Technologies. Please contact Valentina valentina@dublinchamber.ie for more information


Confidence Amidst Threats, Change Bringing Taxing Times
 
Feargal O'Rourke, Managing Partner, PwC; Catherine Moroney, Head of Business Banking, AIB and Joe Tynan, Head of Tax, PwC
Feargal O'Rourke, Managing Partner, PwC; Catherine Moroney, Head of Business Banking, AIB and Joe Tynan, Head of Tax, PwC

High levels of confidence - Key priorities for Irish business leaders ahead of Budget 2019 include improving national infrastructure, reducing the personal tax burden, dealing with the housing crisis to supporting the labour force and boosting Ireland's competitiveness.

 

Calls for measures to support entrepreneurship ahead of Brexit and a sense of mixed views on many new international tax proposals also dominate.  These are some of the key messages from PwC's pre-Budget 2019 survey, the results of which are published today. 


Key findings include:

 

Growth on the agenda

83% of respondents expect their businesses to grow in the year ahead, of which nearly a third (31%) expect this growth to be more than 10%. Key business opportunities are developing new markets/products (66%); exploring operational efficiencies (52%); focusing on people with the right skills for the future (44%) and expansion through a merger or acquisition (31%).

 

Cost of doing business a key threat 

The rising cost of doing business in Ireland (84%) is an acute threat for future revenue growth, according to survey respondents.  Other key challenges include the lack of availability of key skills (67%); the potential negative impact of Brexit in a no-deal scenario (57%); the changing international tax environment (53%); global protectionist trade policies and the potential for international trade wars (41%) and the high personal tax burden (42%).  

Four out of ten (40%) singled out the lack of affordable residential housing (for the labour force) as a key impediment for business expansion in the months and years ahead.

 

Infrastructure and high personal taxes, key priorities for Budget 2019

The number one priority for Budget 2019, according to business leaders who took part in the survey, is for further investment in national and public infrastructure including roads, health service, faster broadband etc (57%).  Other key priorities for businesses ahead of Budget 2019 include continuing to reduce the high personal tax burden (53%); continuing to deal with the housing crisis (45%) and boosting Ireland's competitiveness (42%). 

Over three-quarters of respondents (77%) agreed that moving the Government finances into a surplus, as set out in the Summer Economic Statement, is the right course of action.   Added to this, over a quarter (27%) ranked continuing to build a 'rainy day' fund (to deal with the potential risks future and shocks to our economy) as a key priority.

Joe Tynan, PwC Head of Tax, said: "Reflective of Ireland's robust economic growth, the survey shows a high degree of business confidence with expansion from new products and markets being a key driver of growth. Maintaining Ireland's competitiveness is critical in the light of Brexit and other geopolitical uncertainties and the survey highlights the rising cost of doing business, available talent and residential housing as key concerns. As a small open economy on the edge of Europe, ensuring that our economy has the capacity for future FDI is critical and top priorities for Budget 2019 should include further investment in infrastructure and housing. 

“The Irish Fiscal Advisory Council has already suggested the Government run 'a small budgetary surplus' and the majority of survey respondents echo this view.  The Central Bank has also suggested setting set aside more financial resources which could be used to cushion the economy from future downturns, and one in four respondents agree that continuing to build a 'rainy day' fund is a key priority.

“The survey also highlights that the changing tax environment and geopolitical uncertainties are causing widespread disruption for businesses. For Ireland, one of our biggest concerns is how to manage our international tax reputation.  As a country, we have been very good at providing an environment where companies can align their intellectual property, employees and profits and demonstrate substance.  However, we need to be careful that we move in line with other countries, not ahead.  The recent corporate tax Roadmap provides greater certainty about the future direction of tax change and builds on the already great strides made for a fairer and more transparent tax system in Ireland as a country committed to corporate tax reform. Our challenge is to ensure that we have a sustaintable tax model that provides a level of certainty and stability for business and Ireland has the ingredients to do just that.”

 

Mixed views on many new tax proposals 

Around one in five survey respondents are positive about the impact of US tax reform (20%) and PAYE real-time reporting (17%) on their businesses. However, demonstrating the significant levels of change that many businesses are currently facing, on average, nearly seven out of ten respondents were neutral, or did not know how their businesses would be impacted by many of the new tax proposals in the pipeline.  A third (33%) said that the EU Anti Avoidance Directive (ATAD) and the new Controlled Foreign Company (CFC) regimes will have a negative impact on their business; while a quarter feel  unfavorable about US tax reform (24%), digital tax (23%) and real-time reporting (24%).  

Harry Harrison, PwC Tax Partner, International Tax, commented: "Ireland has made great progress to ensure a fairer and more transparent tax system exists and the Government should be commended for this.  However, the rate of change businesses are facing is unprecedented and it shows no sign of relenting over the coming 1-2 years. Reflecting on the amount of recent international tax developments, the survey highlights mixed views on the impact many of these changes will have on businesses.  The recently announced Corporate Tax Roadmap by the Government clearly demonstrates that Ireland is committed to corporate tax reform and to implementing international best practice, while also giving businesses direction around the timing of some key changes and showing a willingness to consult on some key upcoming developments. However, it is clear that almost every business will face challenges over the coming 12 months and they should already be considering how best to plan for the upcoming changes that will impact them most.”  

 

Call for measures to assist entrepreneurship

If given a choice, half (51%) of survey respondents called for the Minister to decrease the rate of Capital Gains Tax to 30% (from 33%);  Nearly a third (30%) said he should increase the Capital Acquisition Tax inheritance threshold and almost one in five (19%) want the Entrepreneurship CGT Relief threshold raised from €1m to €10m in line with that of the UK.  

 

Call for widening the tax base 

Almost one million earners in Ireland currently do not pay income tax.  84% of survey respondents are of the view that the Minister should widen the tax base, bringing more people into the tax net.  At the same time, 77% called for the current entry point (€34,550) for the higher tax rate to be raised. 

Keith Connaughton, PwC Tax Partner, People and Organisation, said: “The survey reports Ireland's high personal tax burden as a key threat to business growth.  Addressing the personal tax burden and the point at which earners start paying top rates will be particularly important in the post-Brexit era as the country competes internationally for skills and talent from overseas."   

 

Real-Time Reporting - final preparations underway

Three-quarters of respondents (75%) confirmed that they are planning for Real-Time Reporting (RTR) which will come into effect on 1 January 2019. This figure is up from 20% last year.  However, with just 3 months to go, nearly one-fifth (17%) of businesses surveyed admitted to still not having commenced any planning for PAYE Modernisation.

Doone O'Doherty, PwC Tax Partner, People & Organisation, said:  "Real-Time Reporting will be the most significant reform of the PAYE system in over 50 years.  From 1 January 2019, every time employers pay their employees, they will have to report the same level of detail that is currently contained in the annual P35. It is positive that preparations for RTR are in full swing in the majority of businesses surveyed. However, I would be concerned that some respondents may equate liaising with their payroll service / software provider as preparation. In reality, organisations need to be reviewing their data to ensure that it is complete, accurate and up to date and road-testing their processes to ensure that they can get the data to payroll in a timely and automated manner.  Any organisation which hasn't yet commenced this level of review and preparation needs to do so now".

 

Brexit a bigger deal than US trade reform

A third (34%) of survey respondents are concerned that we will see a no-deal Brexit with World Trade Organisation tariffs kicking in from end March 2019.  The majority (61%) are of the view that Brexit is a bigger threat for Irish exports than US protectionism.  Other key business concerns as a result of Brexit are: losing the UK as an important trading partner and supporter at the EU negotiating table; restrictions on people mobility, loss of competitiveness in the Republic of Ireland; uncertainty stalling investment and delays at borders.  

John O'Loughlin, Tax Partner, Global Customs and Trade, said: "Brexit and its likely upset is causing great uncertainty for all businesses.  No-one knows the eventual outcome at this point but PwC are of the view that there are certain aspects that can be planned for now. While we hope for the Withdrawal Agreement to be agreed, including a transition period, nothing is certain.  We urge companies to plan for all scenarios, including a no-deal scenario, as best they can and businesses should be thinking of ‘Day 1 Readiness Measures’ in anticipation of March ‘19. You can access PwC's no risk actions at www.pwc.ie."

ENDS

 

The survey was carried amongst CEOs and MDs of Irish PLCs, MNCs and large private companies as well as company tax leaders in the last two weeks having 88 respondents

More News
Political Leaders with Brendan Howlin
 

We are delighted to announce the Labour Party Leader Party Brendan Howlin TD as the next speaker in our Political Leaders Series.

 

Book your place here for this breakfast briefing on 3rd October.


Brendan Howlin served as Minister for Public Expenditure and Reform during the tumultuous 2011-2016 period and was elected Leader of the Labour Party in May 2016. He will speak about his vision for the capital and discuss issues impacting on Dublin’s business community. Political Leaders Series events offer a unique opportunity for Chamber members to meet and put their concerns directly to key figures in Irish politics.

 

This event is open to all Dublin Chamber Members.

 

Euro Start Project- Erasmus Plus
 

We are delighted to be part of a new Erasmus+ programmed with seven EU partners aimed at capacity building for entrepreneurs and start-ups.

 

 For more details please contact Valentina valentina@dublinchamber.ie


EuroSTART will provide e-learning platform developed to focused on business management. This modules will include:

  • Creativity
  • Cooperation and  team working
  • Financial and Economic
  • Leadership and initiative
  • Intellectual Property Rights
  • Project Management and planning

There is also an opportunity for 5 S. ENTR to take part in a funded learning and network development trip to Budapest in June 2019.

For more details please contact valentina@dublinchamber.ie

Culture Calendar
 

Dublin Theatre Festival 2018 takes over the city from 27 September-14 October. There’s something for everyone – brand new work, fresh versions of classic plays, and adventurous international productions, with music, dance, opera, and theatre for children. You can view the full programme here.

 

Dublin Chamber members can avail of a 10% discount on tickets for The MisfitsEveryone’s Fine with Virginia Woolf, and Bluebeard’s Castle. Just use the code DTF18CHAMBER when checking out.


Looking to Export?
 

The Export & Consular Services department helps companies to get goods shipped abroad, to register products in export markets and to visit export customers.


Services offered include:

•             Certificates of origin issued and stamped

•             Certification of export documentation

•             ATA Carnets, for the temporary export of goods, issued,

•             Legalisation of export and regulatory documentation,

•             Visas for your business travel needs.

 

For further information on any of the above services please contact: Richard Brown (01 644 7204 / richard@dublinchamber.ie) or Aleksandra Balcerzak (01 644 7205 / aleksandra@dublinchamber.ie)

Simon House of Cards Appeal
 

Dublin Simon are currently in the midst of their annual House of Cards Appeal. Instead of sending corporate Christmas cards or gifts this year, get involved and support this appeal – we will use that money to provide food, shelter and permanent housing to those who need it most. 

 

If you would like further information on the campaign please contact Jennifer Kitson on 01 672 8966 or email corporate@dubsimon.ie.  


We are in the middle of an appalling homeless and housing crisis and we need your help. In 2017, we supported 6,285 people and families across our services, a 22% increase since the previous year. Together, we can address this issue and support people who are homeless or at risk of losing their home.

 

In recognition of your valued contribution, your company logo or listing could be seen by more than 340,000 Irish Times readers as well as being featured in our spectacular Simon House of Light projection show at Powerscourt Townhouse Centre in Dublin on the 6th, 7th, 8th December. We would appreciate any donation that you could afford to give.

 

 

Team Green
 

Ireland’s plastic packaging recycling target will more than double by 2030. In order to achieve this ambitious target Repak has taken the proactive step of launching a Plastic Packaging Recycling Strategy.

 

Repak invite you and your workplace to join Team Green! Every month from October, Repak will be giving away €500 to spend with a Repak Member of your choice to one lucky winner. Pledge to join here.

 

 


Chamber News Roundup

**Donate Old Office Computers**

We recently donated 4 old office computers to Camara Education which are now being used in a school in Ethiopia. We encourage you to donate too, contact Lucy.

 

**Membership Plus- New App!**

Don’t miss out on some fantastic discounts via your Membership Plus card - Aviva Stadium Tours, The Fitzwilliam Hotel, Shelbourne Park Stadium, Platform 61, EPIC Ireland, Kylemore Karting, Irish Whiskey Museum and many more! 

 

** Room Hire **

Looking for room hire in the city centre? We have some great room rates available for members here at 7 Clare St. Take a look at our rooms here and for further information contact  Ruthe@dublinchamber.ie.

 


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