Contact: Frans Van Cauwelaert
WHPR
353 1 669 0030

Contact: Claire Quinn
Deloitte
PR Executive
+353 87 6825766

Irish TMT companies need to be aware of tax benefits available to them

Tax strategies can be a significant contributor to the success of businesses’ convergence process, says a report from the Deloitte Touche Tohmatsu (DTT) Technology, Media and Telecommunications (TMT) industry group. How a business addresses tax issues can make the difference between profit and loss in today’s rapidly evolving technology sector.

The DTT report, “Digital Convergence: Successful Business Strategies Need to Consider Tax Impacts,” asserts that convergence provides companies with insights required to capitalise on tax opportunities in a number of areas.  Doing this can enable companies to improve their business processes and bottom-line performance.

“The convergence process often involves business and technology-related decisions that could have significant tax implications,” said Joan O’Connor, Tax Partner, Deloitte. “Decisions regarding where to source products and locate research centres may be determined by available tax planning opportunities in select markets. That is why it is crucial that tax departments are involved from the outset of the convergence process. ”      

The convergence process typically requires investment in research, new technologies and in the diversification of companies’ business model. Tax strategies, if considered at the inception of this process can often lead to tax benefits such as immediate cash payments, reduced effective tax rates and increased market competitiveness.

“Ireland is home to some of the most progressive and innovative TMT companies in the world. But they are competing in an ever more competitive business environment, and many involved in the convergence process may not be aware of the tax benefits, such as R&D credits on the expenditure, 12.5% rate on profits flows from developing and licensing intellectual property available to them. They need to take advantage of process, organisational and tax opportunities to create a successful convergence strategy,” said O’Connor.  “Businesses that consider tax when formulating their convergence strategy may create an advantage over their competitors.”
For a full copy of the report, “Digital Convergence: Successful Business Strategies Need to Consider Tax Impacts” please view the report here.

Disclaimer

The information contained herein is provided by Deloitte Touche Tohmatsu and is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s).

Accordingly, the information is not intended to constitute accounting, tax, legal, investment, consulting or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser.

The information contained herein is provided as is, and Deloitte Touche Tohmatsu makes no express or implied representations or warranties regarding the information contained herein. Without limiting the foregoing, Deloitte Touche Tohmatsu does not warrant that the information contained herein will be error-free or will meet any particular criteria of performance or quality. Deloitte Touche Tohmatsu expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, noninfringement, compatibility, security, and accuracy.

Your use of the information contained herein is at your own risk and you assume full responsibility and risk of loss resulting from the use thereof. Deloitte Touche Tohmatsu will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of the information contained herein.

If any of the foregoing is not fully enforceable for any reason, the remainder shall nonetheless continue to apply.

About Deloitte

Deloitte Ireland is a world-class firm of expert business advisers, serving senior business leaders who are seeking to protect and create value in a complex, dynamic environment. Our objective is to help our clients succeed by anticipating tomorrow’s agenda with focused, insightful and fresh thinking borne out of our multidisciplinary strengths. We draw upon our specialist skills in audit, tax, consulting and financial advisory both within Ireland and across the Deloitte worldwide network. 
What’s different about Deloitte is our people, who focus on building long-term relationships and are determined to deliver measurable value for our clients’ business. With almost 900 people in Dublin, Cork and Limerick Deloitte is known as an employer of choice for our innovative human resources programmes and is dedicated to helping our clients and our people excel. 
'Deloitte' refers to Deloitte & Touche and any associated partnerships and companies established under the laws of Ireland. Deloitte is the Irish member firm of Deloitte Touche Tohmatsu. For more information, please visit the Irish member firm’s website at www.deloitte.com/ie.