new business or product ventures - money back from revenue

NEW BUSINESS OR PRODUCT VENTURES – MONEY BACK FROM REVENUEJames Hughes

November 2013

TABLE OF CONTENTS

1. Employment & Investment Incentive Scheme (EIIS)

2. Seed Capital Relief

3. Start Up Relief

4. Start Your Own Business Relief (SYOB)

EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)

01

EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)

• Benefits

• Cash for Company

• Income Tax Relief for Investor

EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)

• The Company

• Trading company

• Unquoted

• Residence & Incorporation

• Micro, Small and some Medium Sized Enterprises

• Max Lifetime limit of €10m

• Max Annual limit of €2.5m

EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)

The Investor

• Resident in Ireland

• Hold shares for 3 years

• Not connected to company

• Relief of €150,000 in any one year

EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)

Tax Relief

• Initially - 30%

• After 3 years - 11%

EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)

Practical Issues

• EIIS Investors

• EIIS Funds

• Exit Strategies?

EMPLOYMENT AND INVESTMENT INCENTIVE SCHEME (EIIS)

Budget 2014 / Finance Bill Amendments

• Removed from High Earners Restriction

• Investments from 15 October 2013 to 31 December 2016

• New Class of Investors?

SEED CAPITAL RELIEF

02

SEED CAPITAL RELIEF

Key

• Employment in last 6 years?

• Paid PAYE on Employment

Income?

Entitled to Income Tax Refund?!!

SEED CAPITAL RELIEF

The Relief

• Refund of Income Tax

• Max of €100k per annum

• Previous 6 years

SEED CAPITAL RELIEF

Conditions

• Investment in Shares

• Qualifying Company

• Creation of Employment

• Qualifying Employment

SEED CAPITAL RELIEF

Other Matters

• 2nd Investment

• Conversion of Loans

START UP RELIEF

03

START UP RELIEF

• Overview

• Relief from Corporation Tax

• First 3 years Profits

• Incorporation and Commencement

• Employment Based Relief

START UP RELIEF

The Relief

• Relief of up to €40,000

• Marginal Relief to €60,000

• Trading Profits

• Carry forward of losses

START YOUR OWN BUSINESS RELIEF (SYOB)

04

START YOUR OWN BUSINESS RELIEF (SYOB)

New Relief

• Introduced by Budget 2014

• Encouraged Innovation and Employment

• New Business

START YOUR OWN BUSINESS RELIEF (SYOB)

The Relief

• Exemption from Income Tax

• Profits of first 24 months

• Limit of €40,000 per annum

START YOUR OWN BUSINESS RELIEF (SYOB)

Qualifying Conditions

• Commerce to trade

• On or after 01 January 2014, and

• Before 31 December 2016

• Unincorporated business

• Unemployed for previous 15 months

mazars.ie

Mazars is present in 5 continents.

CONTACT

Mazars

Harcourt Centre Block 3, Harcourt Road

Dublin 2, Ireland

Tel: +353 (01) 4494400

Email: mazars@mazars.ie

Gerry Vahey gvahey@mazars.ie

(01) 449 6423

James Hughes jhughes@mazars.ie

(01) 449 6476