new business or product ventures - money back from revenue
DESCRIPTION
By James Hughes, Manager – Mazars R&D Tax GroupTRANSCRIPT
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: [email protected]
Gerry Vahey [email protected]
(01) 449 6423
James Hughes [email protected]
(01) 449 6476