INVESTING IN IRELAND ISSUE 46, MARCH 2021 - PWC IRELAND
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www.pwc.ie/fdi
Investing in Ireland
Issue 46, March 2021
Happy St. Patrick’s Day and welcome to the March We also highlight some recent publications and
2021 edition of PwC’s newsletter on foreign direct podcasts released by PwC and the Irish Revenue
investment (“FDI”) in Ireland. on current topical issues in the FDI space (see page
6). Ireland also maintains its number one ranking in
This edition highlights the strength, resilience and a number of key areas for FDI investors (see page
continued growth of the FDI sector in Ireland. 7).
Confidence in Ireland’s economy is reflected in the
encouraging number of Irish jobs and investments Please do not hesitate to contact myself, any
announced over the last few months (see page 2). member of our team, or your usual PwC Ireland
contact at any stage. We would be happy to tell
The recently published report by IDA Ireland you more about the topics raised in this issue or to
outlining Ireland’s 2020 FDI results further illustrates include any interested parties on our mailing list.
the success and development of the FDI pipeline in
Ireland (see page 4).
Remember to visit our FDI website for more
This edition highlights Ireland’s status as a top updates and detailed information
country for global connectedness and how Brexit (http://www.pwc.ie/fdi), including a range
may impact mobility and immigration for employers of recent publications.
and employees across Europe (see page 5).
Liam Diamond
+353 1 792 6579
+353 86 405 6965
liam.diamond@pwc.com
1
Recent FDI investment
announcements
Alter Domus, a leading provider of integrated Harmac Medical Products, an engineering and
solutions for the alternative investment industry, has manufacturing company of single-use medical
announced 100 new jobs at its European Centre of devices first established in Ireland in 1998, has
Excellence in Cork. This announcement increases announced a major investment in its facility in
their headcount in Ireland from 100 to 180 people. Castlerea creating 60 new roles.
BT Sourced, an initiative of the communications HID Global, a worldwide leader in trusted identity
provider BT will create more than 70 new roles in solutions and first established in Ireland in 2006, has
Dublin with the opening of its new procurement announced plans to open their Centre of Excellence
company in April 2021. The new company will use in Galway in 2021 with plans to grow its current
AI-powered technology and new partnership-led headcount of 180 people to 300 over the next three
approaches to simplify and speed up BT’s global years.
sourcing with suppliers and start-ups.
Huawei, a leading global provider of ICT
C.H. Robinson, a global logistics company, infrastructure and smart devices and operating in
has announced plans for a new Technology Ireland since 2004, has announced plans to invest
Development centre in Cork and the creation of €80 million in Irish R&D over the next two years
more than 30 technology professional jobs in the which will create a further 110 new jobs by the end
next three years. of 2022. This announcement is in addition to their
creation of 200 jobs and investment of €60 million
Fidelity Investments, a global financial services since 2019.
company, has announced it will further expand
its Irish footprint with the creation of 90 new Indigo Telecom Group Limited, a provider
technology jobs in its Galway and Dublin offices. of infrastructure to fixed/mobile carriers, has
announced plans to recruit over 100 people over
Genesys, a global leader in cloud customer the next three years in Limerick as part of plans
experience and contact centre solutions, has to expand its portfolio internationally. The new
announced 100 new software roles at its R&D roles will include Fibre Planners, GIS Engineers,
centre for Digital and Artificial Intelligence in Galway. Design Engineers, Telecoms Surveyors and Project
They also have plans to relocate to a larger Galway Managers.
location in the Bonham Quay development in the
fourth quarter of 2021. Logitech, an award-winning design company and
maker of cloud peripheral products, first established
2
in Cork in 1988, has announced the creation of more
than 50 new jobs over the next three years in the
areas of design, engineering, IT and supply chain
functions.
Medallia, a pioneer and leader in experience
management and award-winning SaaS platform and
solutions, has announced its expansion into Ireland
with its New Mid-Market Sales and Support Hub for
EMEA. The new roles as part of this expansion will
include multilingual sales for the French, Spanish,
Italian, DACH, Nordics, Benelux and Middle East
regions. “Our business in Ireland has been a hub
of innovation and industry firsts. Today we
Microchip Technology, has announced an are embracing the power of digitalization
investment of $20m in a new development centre in to drive new efficiencies for our clients and
Cork and the creation of 60 new jobs over the next their investors – including the replacement
3 years and approximately 200 new jobs over the of manual processes and paper-based
next 7 years. This new development centre further communications digital methods with new
expands their presence in Ireland with exisiting types of experiences”
operations currently in Dublin, Cork and Ennis. Meliosa O’Caoimh, Head of Northern Trust
in Ireland
MSD, a multinational pharmaceutical company,
has announced the creation of over 140 new jobs
by 2025 with its plans to build a new biologics “We are delighted to confirm our plans for
facility and its newly acquired Dunboyne Biologics further growth in Ireland. We have continued
campus in Meath. In addition to this, the existing to rapidly grow the business in recent years
MSD Dunboyne Biologics facility is expected to hire and see a new market opening up here for
approximately 100 new employees in the next year. investors in private assets. This industry
MSD was first established in Ireland over 50 years holds over $10 trillion in assets, a growing
ago and currently employs approximately 2,700 proportion of which is invested in Europe.
people across its 6 sites, producing over 50% of Ireland is going to be an increasingly
MSD’s top twenty products. important access point to these markets”
Northern Trust, a leading financial services James McEvoy, Country Executive Ireland
company and the third largest provider of fund at Alter Domus
administration and custody services in Ireland, has
marked 20 years since it first established in Ireland.
The company has recognised this achievement by “As a European company, we are passionate
donating €20,000 to local charities around its Dublin about serving the needs of European SMEs,
and Limerick offices, in line with its approach to and Dublin’s an ideal place to do that. The
support local communities. city’s business-friendly environment and
status, as a well-established international
Personio, a European HR tech company, is to create talent hub – one that’s already helped many
around 140 additional jobs with the expansion of its successful tech companies better serve the
new International business and software engineering European market – made the decision to set
hub in Dublin. Personio first invested in Dublin in up our fourth office here an easy one.”
April 2020 employing a team of 40 people. The Hanno Renner, Co-founder and CEO of
company offers SMEs recruiting, HR management Personio
and payroll support with its all-in-one HR software.
Takeda, a Japanese multinational pharmaceutical
company, has announced a €36 million investment
in its Grange Castle facility creating approximately
100 new jobs over the next 3 years. This
announcement supports the company’s plans to
expand its cell therapy treatment options and its role
in supplying its patients in the EU, US and Canada.
3
FDI in Ireland - 2020
IDA Ireland, the Government agency responsible for and maintaining infrastructure currently in place.
attracting FDI to Ireland, recently released a report It will identify sustainable growth opportunities
highlighting the 2020 results for FDI in Ireland. In through focusing on transformative investments
spite of the global pandemic and the international to increase the productivity of Irish operations
economic uncertainties associated with it, 2020 and their workforce through RD&I, digitisation and
produced positive results for FDI in Ireland from sustainability.
new and existing investors.
FDI performance and the IDA Ireland’s new strategy
The report shows that record numbers are now will help to ensure that Ireland will be able to attract
employed in the multinational sector, with total and retain FDI investment for many years to come.
employment figures for the sector now standing at
257,394. This represents a 3.6% overall increase
from 2019. The South West, Eastern & Midlands
region, and Dublin were the most positively
impacted areas. In addition, for every ten jobs
created in this sector, eight jobs were created in the
wider economy, resulting in estimated direct and IDA Ireland 2020 Results
indirect employment totaling 463,309.
The report also showed that investment in regional • 246 investments won in 2020 - 95 first time
development continued to grow last year. The investors
report shows that 246 new investments were won
in 2020, of which 52% were projects based outside • 52% of total investments were in regional
of Dublin. A total of 47% of IDA Ireland’s clients are locations
located in regional areas and they employ 56% of
total employees working in the FDI sector.
• Direct FDI employment grew to 257,394 -
an increase of 3.6% from 2019
While many sectors have experienced difficulties
in recent times, FDI has shown its resilience. In
particular, Life Sciences and Technology sectors • For every 10 FDI jobs, 8 jobs are created in
were able to adjust quickly and many companies the wider economy
have increased operations in Ireland in response
to an increase in demand for their products and • IDA Ireland’s new strategy will target 800
services. investments and 50,000 new jobs
IDA Ireland has also announced their new 4 year • 50% of new investments are aimed to
strategy - “Strategy Driving Recovery & Sustainable promote regional locations
Growth 2021-2024”. This strategy will see the
IDA maintain a focus on new large scale capital-
intensive projects, as well as investing in upgrading
4
Globally Connected Ireland
According to the recently published “DHL Global Ireland is:
Connectedness Index 2020”, Ireland is ranked
as one of the top nations in the world for global
• The only English speaking country in the EU
connectedness and mobility. During periods of
great uncertainty, Ireland has preserved a sense of • The closest European country to the United
continuity and interconnectedness. States and Canada and has long standing
close business and cultural ties with both
The distance between Ireland and the rest of the countries
world is continually shrinking as global mobility
increases and Ireland’s connectivity improves. This • The 5th most globally connected country in
was reflected in IDA Ireland’s recently announced the world
2020 results for Ireland which shows, in particular,
strong continuing FDI from the US. • 8th in the world for international trade
Brexit & Immigration
Now that the UK has officially left the EU, Employees will also have to consider the
immigration and global mobility is a new concern implications of Brexit on any new pre-travel
for many employers. While free movement of UK requirements, the potential cost of obtaining
and Irish nationals between both countries has immigration clearance, social security procurement
been retained under the Common Travel Area and the application of Irish payroll tax (“PAYE”) rules
agreement, freedom of movement of UK and EU to short-term business travelers. Please see here
nationals between the UK and the rest of the EU for further information.
has ended.
Stay in touch with our dedicated Immigration
Companies that employ either UK nationals who Team and keep up to date with all the latest in
need to travel to another EU member state, or Irish Immigration news. Click here for further
EU national employees who need to travel to the information.
UK will need to undertake a thorough review of
their workforce, identify any frequent business
travelers or those who are likely to be affected by
immigration restrictions and plan for obtaining the
correct work authorisation in order to continue
operating as usual.
5
Publications and
podcasts
Tax risk and controversy webcast series: Overview of the Tax risk
and controversy environment
The tax risk and controversy landscape is changing rapidly. Over
recent years, Revenue authorities have significantly increased the level
of resources devoted to audits and enhanced their risk profiling and
data interrogation capabilities. As a result, Revenue interventions are
becoming more onerous, data requests more granular and disputes or
assessments more frequent. We expect this trend to continue.
See more here
Irish Revenue publish their first ever CCF manual
The long-awaited manual provides much anticipated guidance on the
operation of Revenue’s Cooperative Compliance Framework (“CCF”) for
larger corporate taxpayers with particular focus on the following; features
expected to be seen in a Tax Control Framework, the eligibility to submit
a new CCF application form, and confirmations regarding Transfer
Pricing Audits. For further information, the manual can be found below.
See more here
Establishing a branch or subsidiary in Ireland
We summarise the most appropriate legal presence to consider
when establishing in Ireland, along with the Companies Office filing
requirements.
See more here
Family Business Survey 2021
PwC Ireland has published its 10th Global Family Business survey
revealing the current thinking and future outlook of 2,800 family business
leaders from 87 countries.
See more here
Ireland and the advent of 5G
PwC Ireland explores the benefits of the soon arising 5G and how it will
revolutionise future technologies and markets.
See more here
6Leading the way
Economic
Updates 1 in Europe for:
st
• Irish GDP expected to grow by 3.4 per • Paying business taxes1
cent in 2021 • E-commerce and the integration of digital
• Ireland achieved a positive brand value technologies2
growth of 11% in 2020 • ICT as a percentage of GDP and ICT labour
• The Irish economy is projected to productivity2
recover in 2021 and expand at over 4% • Friendliest city in the EU (Galway)3
in 2022
• EU region of the future (Dublin)4
• Ireland has secured almost 25% of
Brexit relocations to date
• The Irish Funds industry is expected to
1 in the Eurozone for:
st
grow by up to 10.8 per cent a year from
now until 2025
• Quality of life5
• Business Friendliness (Cork City)4
• FDI Strategy (Cork City)4
1 PwC/World Bank Group “Paying Taxes” Report 2020
2 The Digital Economy and Society Index 2020
3 Condé Nast Traveller Reader Travel Awards 2020
4 Global Cities of the Future 2020/21 – FDI Intelligence
5 UNDP Human Development Index
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 2021
Brexit
CEO Survey
Previous issue of Investing in Ireland
Tax Facts 2020
8Contacts
Liam Diamond Mary Honohan James McNally
+353 1 792 6579 +353 1 792 8609 +353 1 792 6844
liam.diamond@pwc.com mary.honohan@pwc.com james.o.mcnally@pwc.com
Jean Delaney Susan Kilty John O’Leary
+353 1 792 6280 +353 1 792 6740 +353 1 792 8659
jean.delaney@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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