Quattroporte Inc.

3472 words 14 pages
Quattroporte Inc.
PLG#2: Ireland, Guernsey, Malta
Sandra Hamilton
Abdullah Hanna
Jatin Kot
Presented to Professor
Geoff Reid
EMBA 602
University of Fredericton
February 24th, 2013

Contents Executive Summary 3 The Business Model 3 National profiles Political and Policy Direction 4
Guernsey……………………………………………………...……………………4
Malta………………………………………………………….……………………6
Ireland………………………………………………………………………….…..7
Globalization & Comparative Advantage 7 Primary Factors Most Influencing Profitability 7 Corporate taxation 7 Productivity and Availability of Human Resources 8 Currency exchange rates 9 Consumer Taxation – VAT 9 Capital Gains Tax Policy 9 Banking 10 Foreign Direct Investment 10 Intellectual
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(EMD, 2011).
Malta has 4% corporate tax rate, it works on a system of tax rebates to provide incentives for companies to establish in the country. The standard corporate tax rate is 35% and up to 6/7 of this is returned as refunds to corporations that establish businesses in Malta as a trading company. When taking these refunds into account, the effective corporate tax rate is calculated to be 5%.
Malta encourages foreign investment through a number of programs such as tax holidays, export incentives, investment & accelerated depreciation allowances, reduced taxes on reinvested profits, grants to cover training costs and management services, a generous attitude toward repatriation of profits and capital, and few restrictions on foreign ownership of Maltese firms, (Malta - Foreign investment, 2011). The impact of the Euro’s comparatively weak currency & exchange rate performance and stability from the sovereign debt crisis in other EU nations, reduced Malta’s competitive position against Guernsey Figure 1 and Figure 2. With a highly skilled, multi-lingual workforce with strong computer skills, Quattroporte could, at a future date, operate a European customer service center in Malta.
Ireland
Ireland has a corporate tax rate of 12.5% and the Euro as its national currency. Ireland prides itself on being the ‘Silicon Valley’ of Europe. According to the World Economic Global Competitive Report 2012

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