Revenue Incentives

The Office of the Revenue Commissioners provides a number of supports and initiatives to assist start-up business and small and medium enterprises.  Initiatives include tax incentives - tax reliefs, deductions and exemptions as well as supports and other initiatives.

Here is a leaflet on starting and running a business which can be downloaded from their website outlining some key information:

Main initiatives include:

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.

Click here for further detailed information on the R&D Tax Credit 

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.

Click here for further detailed information on the Seed Capital Scheme

Three Year Corporate Tax Exemption

The scheme provides relief from corporation tax on the trading income and certain gains of new start-up companies in the first 3 years of trading. There will be full relief on income and gains relating to the trade where total corporation tax liability in any of the first 3 accounting periods does not exceed €40,000. There will be marginal relief where the tax liability falls between €40,000 and €60,000. You can earn €320,000 tax free per year for the first 3 years. The relief available is now based on the amount of employers’ PRSI paid by an employer in respect of their employees.

Start Your Own Business Relief

This 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.

Click here for further detailed information on the Start Your Own Business Relief

Revenue Online Service (ROS)

From 1st June 2014, all new businesses must now register to pay and file using Revenue Online Service called ROS

Features include:

  • You file all returns online and upload offline returns
  • 24/7 service 
  • Make payments by Debit and Credit Card or Online Banking
  • Instant access to Customer profile for Revenue, Customers and Tax Practitioners
  • Online calculations of tax liability reduces the need for Customer contacts
  • Supports online filing and payments for 22 taxes and duties
  • Inbox / Revenue record
  • Pre-populated returns
  • Online Banking Customer Information Service
  • Instant acknowledgement
  • No duplication
  • Elimination of clerical error
  • Secure 24 x 7 access
  • Simple user friendly forms
  • Environmentally friendly
  • Quicker repayments
  • E-registration extended filing dates