Shifting sands in the world of tax have implications for pharma

30 January, 2018

Oliver O'Connor, Jean Delaney and Matt Moran.

Pictured are (l-r): Oliver O'Connor, CEO, Irish Pharmaceutical Healthcare Association; Jean Delaney, PwC's Pharma and Life Sciences Leader and Matt Moran, Director, BioPharmaChem Ireland.

With the dramatic overhaul of its tax system in December, the US not only grabbed headlines, it also added a new dimension to the process of global tax reform. EU and OECD developments in recent years had already put the question of tax firmly on the agenda of Ireland's Biopharma industry. The US’s unique take on tax reform is going to change the conversation. These tax reforms and developments, along with Brexit and the wider trade agenda, will be the key focus at the PwC tax workshop taking place at the 2018 BioPharma Ambition conference at Printworks, Dublin Castle, on Wednesday morning, 21 February.

Speaking ahead of the conference, PwC Ireland's Pharma Life Sciences Leader, Jean Delaney, said: "There has been a really significant change in the US rate of corporate tax, from approximately 39% to 25% (including state taxes) and the US has introduced other provisions which it hopes will make investment in the US more attractive. The fear that these could produce a very different tax result in the analysis of future investment is real but the reality may be much less dramatic and more nuanced than companies might expect. As a gateway to the EU with access to over 500 million consumers, Ireland, having the highest performing Eurozone economy through to 20241 combined with a 12.5% corporate tax rate and a tax regime that rewards investment in R&D and intellectual property, remains a very attractive location in which to invest.“

"It is also important to remember that EU developments are having an impact. EU corporate tax reform has been creating new legislation that will come into effect over the next 1-3 years. The debate over where value is created and tax should be paid continues, driven by the debate on digital business but with the potential for spill-over into all areas of business. Brexit has focused minds on questions of tariffs, trade and how to do business in the EU and UK."

PwC's tax workshop will demystify global, US and EU tax developments for the Pharma industry based in Ireland. It will explain the changes coming down the track, identify what to watch for, highlight the moving parts and enable attendees to make more informed tax decisions in the future.

Speaking about the event, Irish Pharmaceutical Healthcare Association CEO Oliver O’Connor, said: “We are delighted that once again PwC has come on board to support the BioPharma Ambition conference. The inaugural event in 2016 was a great success and we are confident that 2018 is going to be even better. The taxation workshop being run by PwC is very timely and topical and promises to be of particular interest to delegates who will be gathering for the plenary sessions that commences later that day.

ENDS

Notes to editor

  1. According to PwC's latest Global Economic Outlook

About BioPharma Ambition 2018
The island of Ireland has established itself as a place of global significance for the biopharmaceutical industry and is set to capitalise on this and host a major international multi-function convention in Dublin on 21-22 February 2018.

The Irish Pharmaceutical Healthcare Association and BioPharmaChem Ireland, representing the research based and manufacturing biopharmaceutical industries respectively, together with the National Institute for BioProcessing Research and Training will host BioPharma Ambition®, a multi-platform event to inspire and showcase innovation.

With international policy leaders, renowned researchers and senior industry personnel, the event will highlight the ambition of the industry for the health and well-being of populations. It will also highlight where the research is pointing and how Ireland will support innovation in discovery, development, manufacturing and healthcare solutions.

For more information on how to register to the event and PwC Tax Workshop visit www.biopharmaambition.com


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Contact us

Jean Delaney

Partner, PwC Ireland (Republic of)

Tel: +353 1 792 6280

Johanna Dehaene

Corporate Communications, PwC Ireland (Republic of)

Tel: +353 1 792 6547

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