Irish Stock Exchange Welcomes Budget Initiative To Exempt ESM Companies From Stamp Duty
The Irish Stock Exchange (ISE) welcomes the Government’s 2014 Budget announcement that it is to exempt from stamp duty the transfer of shares of companies on the Enterprise Securities Market (ESM). Stamp duty is currently charged at a rate of 1% on investments made in the shares of Irish companies.
The ISE has long campaigned for the removal of stamp duty on investing in Irish companies – this initiative enables ESM companies to operate on a level playing field with their international peers when competing for international investment. It matches similar proposals made in the UK earlier this year and moves the Irish market more in line with European norms.
The exemption of ESM companies from stamp duty, the ISE’s market for small to medium sized growth companies, supports enterprise, growth and employment in Ireland and will help Irish companies to build scale in their business through public markets. It will also have a positive impact on investors including pension funds which invest in the shares of Irish companies quoted on the ESM.
ISE Chief Executive Deirdre Somers said the proposal is an essential step in creating the next generation of leading Irish publicly-quoted companies and meets some of the Government’s stated objectives in the Action Plan for Jobs – to incentivise dynamic companies to choose growth and scale using the IPO route as an alternative to trade sale.
“Ireland needs to ensure that Irish companies are as attractive as their international peers when it comes to investment. We welcome that ESM companies will now be exempt from stamp duty as this tax acted as a barrier to international investment. This initiative is an important step in the creation of the next generation of leading companies in Ireland which choose the IPO route to grow - like Ryanair, Kerry Group and Paddy Power. High-quality, scalable businesses can create jobs and deliver much needed growth in the Irish economy”, said Ms Somers.