- The BRICS countries represent almost 3 billion people, with a combined GDP of US$14.9 trillion and an estimated US$4 trillion in foreign reserves - see video.
- Investment in the BRICS markets represent a diverse yet significant opportunity - given the need for Irish companies to expand so as to achieve scale.
- See KPMG’s Expanding into BRICS video: http://youtu.be/Wyy7nX1rysg
The government has encouraged Irish companies to look at BRICS countries as a largely untapped opportunity. And, speaking at the launch of the guides, KPMG Tax Partner, Sharon Burke, observed that though "Government support for Irish business looking to the BRICS markets has been well flagged", the "potential benefits of overseas expansion are clear but the serious pitfalls may be hidden". In that context she held that "these specially tailored guides with their country specific information will be a useful resource for Irish business as they look to expand internationally".
Personal Tax Incentives
Sharon Burke also highlighted the personal tax incentives for those working for Irish companies in BRICS countries: "The government introduced a Foreign Earnings Deduction Incentive some time ago. This is a relief currently available to Irish-based individuals spending part of their working time in BRICS countries. Where an individual meets the qualifying criteria for the Foreign Earnings Deduction, the income they receive in relation to their work-days in the overseas location may be exempted from Irish tax".
In a further comment, she noted that "the recent extension of relief under the Foreign Earnings Deduction is a welcome addition to the last budget and is aimed primarily at companies expanding into these locations".