Dáil Éireann Debate, Thursday - 5 October 2023
90. Deputy Robert Troy asked the Minister for Finance if he will be bringing forward any new tax measures to support indigenous businesses looking to develop export markets; and if he will make a statement on the matter. [43165/23]
View answerThe Deputy will be aware that it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions. However, I will draw the Deputy’s attention to a number of current taxation measures which support the scale-up and expansion of Irish businesses.
The Foreign Earnings Deduction (FED) is designed to support firms to develop new export markets for their goods and services. The FED is a relief from income tax for Irish resident employees who temporarily carry out duties of their office or employment in certain foreign countries. Currently the relief covers thirty foreign jurisdictions, including the BRICS countries, and Finance Act 2022 extended the FED relief to the end of 2025.
Other measures to support the growth of Irish businesses generally are the Employment and Investment Incentive (EII), the Start-Up Relief for Entrepreneurs (SURE), and the Start-Up Capital Incentive (SCI), all of which are designed to support companies in securing risk finance to found or grow a corporate business.The Employment and Investment Incentive (EII) provides a platform for investment in certain SMEs. It provides tax relief for individuals who purchase qualifying trading company shares. The relief aims to encourage individuals to provide equity-based finance to trading companies, to assist companies to raise finance to allow them to expand and create or retain jobs.
The Start-Up Relief for Entrepreneurs (SURE) is a tax relief for entrepreneurs who leave an employment to set up their own company. It can provide a refund of income tax paid in previous years where the individual establishes a new trading company and invests cash through the purchase of shares.The Start-Up Capital Incentive (SCI) is a tax relief for early-stage micro companies to attract equity-based risk finance from family members.
There are also incentives available to support smaller companies in the early stages of their growth, and in competing with larger businesses to attract key staff. The start-up relief for new companies provides relief from corporation tax to new companies in respect of their first five years of trading, subject to limits. The Key Employee Engagement Programme (KEEP) allows certain SMEs to engage key staff in a more cost efficient manner. The scheme is a focused share option programme, intended to help SMEs attract and retain talent in a highly competitive labour market.
The purpose of these reliefs is to encourage the foundation and growth of companies in Ireland, and to support job creation and economic activity in the State. Promoting investment and jobs in Ireland is a key part of the Government’s overall strategy.
