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Global best practice in

productivity improvement –
lessons for Northern Ireland

May 2009
Free trade zones offer attractive benefits to trading
companies (2/2)

• Only 25% can be sold on


• 0% on VAT
local market (50% for
• No charges on local
• No duties and charges for services)
services and goods if
Additional financial goods within FTZ • No income tax
75% for export
incentives • Duties payable if local • 10 years capital tax
• All tax benefits available
consumption exemptions
in Ireland (low corporate
• no restrictions on
tax, R&D tax credit)
capital/profit repatriation

• License has to be • Free Trade Sub Zones can


• EnterpriseOne provides
requested from Ministry be provided for companies
access to different
of employment unable to operate in
services (e.g. application
• Eligibility to Shannon existing zones (min 2
for licenses premises in 5
Additional Information Free Zone comparatively million USD investment)
min, submission of trade
limited (engineering/high • Length of tax exemptions
documents) and all
tech/pharmaceuticals/ can be extended for re-
information on free trade
healthcare) investments
zones

• Requests for FTZ


• Single Administrative
benefits can be made • CINDE and Procomer
document
online (TradeNet) assist companies
Services provided • Services provided by
• Simplified customs • On-site clearance of
by agencies Shannon Development
procedures customs
are similar to those
• Training courses on • Online-services available
provided by the IDA
customs procedures

SOURCE: Shannon Development, Business Singapore, CINDE, PROCOMER | 1


Data sources

Population: Global Insight (Series WA0980001.A)


Real GDP: Global Insight (Series WA1720003.A)
Employment: Global Insight (Series WA1320062.A)
Exports: Global Insight (Series WA1721449.A)
FDI: IMF International Financial Statistics (Total stock inward FDI, % GDP)
R&D: OECD Research and Innovation database (Total R&D spend as % of GDP)
Tax rate: IMD World Competitiveness index
Ease of doing bus.: World Bank ranking
Students graduating: UNESCO (Total graduates, Tertiary)
Engineers graduating: UNESCO (Graduates in engineering, manf. and construction. Tertiary)
Public sector: IMD World Competitiveness index 2.12
Average wages: IMD World Competitiveness index 3.201
English-speaking: Eurobarometer 2005 for European countries plus Singapore census
Electicity costs IMD World Competitiveness index 4.1.24
Broadband pen.: OECD Broadband statistics (Broadband subscribers per 100 inhabitants)

SOURCE: Team analysis | 2

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