Revenue & Other Incentives for Business

  • Revenue & Other Incentives for Irish Business

 

 

  • Employment Investment Incentive (EII)

The Employment Investment Incentive (EII) is a tax relief incentive scheme which has replaced the Business Expansion Scheme, which provides tax relief for investment in certain corporate trades. The maximum investment by all investors in any one company or group of companies is €10,000,000 subject to a maximum of €2,500,000 in any one twelve month period. It allows individual investors to obtain income tax relief on investments up to a maximum of €150,000 per annum in each tax year up to 2013. Relief is initially available to an individual at 30%. A further 11% tax relief will be available where it has been proven that employment levels have increased at the company at the end of the holding period (3 years) or where evidence is provided that the company used the capital raised for expenditure on research and development. 

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  • R&D Tax Credit

The Research and Development Tax Credit is a valuable tax-based incentive that is designed to encourage investment in R&D by companies in Ireland. A 25% tax credit for qualifying Research and Development expenditure exists for companies engaged in in-house qualifying research and development undertaken within the European Economic Area. This credit may be set against a company's Corporation Tax liability. The first €100,000 of all qualifying R&D expenditure will benefit from the full 25% R&D tax credit from 2012. This is of particular benefit to SMEs. For larger R&D expenditure, the tax credit will continue to apply only to the amount by which expenditure in 2012 exceeds that incurred in the base year 2003.

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Starting Your Own Business

  • Seed Capital Scheme

If you start up and work full-time in your own company, you can claim back the income tax you paid in the previous six years to invest equity into a company (subscribed as shares) engaged in a qualifying trade. The amount of relief is restricted to the amount of the investment. Since November 2011, the scheme is open to a much wider range of sectors and the ceiling on recoverable tax can now be up to €100,000 in each of the six look back years.

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  • Start Your own Business Relief

The Start Your Own Business scheme provides for relief from Income Tax for long term unemployed individuals who start a new business. The scheme will provide an exemption from Income Tax up to a maximum of €40,000 per annum for a period of two years to individuals who set up a qualifying business; having been unemployed for a period of at least 12 months prior to starting the business. It runs from 25 October 2013 to 31 December 2016.

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  • Back to Work Enterprise Allowance

If you have been signing on for over 12 months and you would like to become self-employed, the Back to Work Enterprise Allowance (BTWEA) allows you to keep your social welfare payment for 2 years (Year 1: 100%, Year 2:75%). To qualify, you must be setting up a business that a Local Integrated Development Company or a Facilitator has approved in writing in advance.

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  • Short-Term Enterprise Allowance

The Short-Term Enterprise Allowance (STEA) gives support to people who have lost their job and want to start their own business. It is paid instead of Jobseeker’s Benefit for a maximum of 1 year. It ends when the entitlement to Jobseeker's Benefit ends (that is, at either 9 months or 12 months).

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Recruiting

  • Jobs Plus

This has replaced the Revenue Job Assist and the Employers PRSI Incentive Scheme.

JobsPlus is a new employer incentive which encourages and rewards employers who employ jobseekers on the Live Register. This incentive replaces the Revenue Job Assist and Employer Job (PRSI) Exemption Scheme from 1 July 2013. It is designed to encourage employers and businesses to employ people who have been out of work for long periods. Eligible employers who recruit full-time employees on or after 1 July 2013 may apply for the incentive, which will initially operate on a pilot basis.

The Department of Social Protection will pay the incentive to the employer monthly in arrears over a 2-year period. It will provide 2 levels of regular cash payments: A payment of €7,500 for each person recruited who has been unemployed for more than 12 but less than 24 months A payment of €10,000 for each person recruited who has been unemployed for more than 24 months

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  • JobBridge

JobBridge offers an internship of 6-9 months to a person who has been signing on as available for work and getting a payment or credits for at least three months. Time completed on programmes in FÁS training, back to education or on a community scheme will count towards eligibility. Participants receive €50 per week on top of their welfare payment.

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  • FÁS Wage Subsidy Scheme

 The FÁS Wage Subsidy Scheme provides financial incentives to employers, outside the public sector, to employ disabled people who work more than 20 hours a week. A person on the Wage Subsidy Scheme is subject to the same conditions of employment as other employees These conditions include PRSI contributions, annual leave, tax deductions and the going rate for the job.

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