Dublin's IFSC, which was set up by the Irish Government with EU approval in 1987, is globally recognised as a leading location for a range of internationally traded financial services, including banking, asset financing, fund management, corporate treasury management, investment management, custody and administration and specialised insurance operations.
The centre is a vibrantpart of the Irish economy. Recent figures showed that the Irish Exchequer collected more than €700m in corporation tax from IFSC companies in 2002. An estimated 10,700 employees work in the IFSC, and this figure is expected to grow by 1,000 this year.
More than 430 international operations are approved to trade in the IFSC, while a further 700 managed entities are approved to carry onbusiness under the IFSC programme. The centre is host to half of the world's top 50 banks and to half of the top 20 insurance companies. Merrill Lynch, Sumitomo Bank, ABN Amro, Citibank, AIG, JP Morgan (Chase), Commerzbank, BNP and EMRO are just some of the big-name operations that have chosen to locate in the area. A sophisticated support network, including shared services centres, softwaredevelopment, telecommunications, and legal and accountancy companies, has also developed around the IFSC.
According to the Central Bank, the net asset value for collective investment schemes for regulated funds was just under Ђ424bn at the end of August 2004. At the end of October 2005, a total of 3,683 funds and sub-funds were authorized.
| top | Overview | Background | Site Development | Approvaland Certification of IFSC Companies |
The IFSC was established in 1987 under legislation designed to boost activity and employment in the Irish economy. The Government had identified the growth potential of the international financial services sector and recognised that Ireland had the capacity to develop in the industry because of its well developed financialinfrastructure, a sophisticated internal and international communications system and a young and highly educated population.
The Finance Act, 1986, introduced financial incentives to encourage urban renewal and investment by the private sector. The Finance Act 1987 established a special 10 percent corporation tax rate for certified companies setting up in the IFSC. From the end of 2002, this 10 percentrate ceased to apply to financial services companies, except for those operations that set up before before July 1998, which will continue to avail of the rate until the end of 2005. All other operations are now subject to the standard corporation tax rate of 12.5 percent on trading income.
From the 1st January 2006, Companies in the IFSC in Dublin will pay tax at the normal corporation taxrate of 12.5 per cent, this special IFSC rate ends in accordance with agreements between Ireland and the EU on state aid rules. The 12.5 per cent is still below the corporation tax rate of many of Ireland's European competitors; although several new EU countries from eastern and central Europe have also slashed their corporation tax rates to emulate Ireland's achievements in attracting foreigndirect investment.
| top | Overview | Background | Site Development | Approval and Certification of IFSC Companies |
The initial designated site of the IFSC was 11 hectares of land in the Custom House Docks area of the Dublin's City Centre. This area was one of the largest blocks of prime urban land in the city to be designated for redevelopment. The Customs HouseDocks Development Authority was established to redevelop the area. Construction started in late 1988 and the first building, the Western Block, was completed and occupied by Allied Irish Banks in 1990.
In May 1997, the Custom House Docks Development was dissolved. At this stage, the IFSC had 114,000 sq m of office accommodation, as well as 333 apartments, a hotel, multi-storey car park and...