Review of taxation eyes support for small businesses

A review of taxation for self-employed people and entrepreneurs is examining if the system can be changed to support businesses.

Simon Harris, Minister of State at the Department of Finance, said the final report of the review, to be published in the coming weeks, will show how tax can be used to encourage entrepreneurship.

Mr Harris, a TD for Wicklow, said it will consider 11 questions on tax and the self-employed, such as what role tax should play in encouraging entrepreneurship.

It will also consider “what barriers exist to establishing enterprises in the current tax system” and “what existing tax measures are effective in supporting small business and encouraging entrepreneurs”. It will look at whether there should be greater alignment with the PAYE system.

Entrepreneurial activity

The Department of Finance says the review will also “examine whether changes to existing tax expenditures and/or new measures could be introduced to incentivise entrepreneurial activity”.

Mr Harris said: “This review will, I believe, bring us closer to identifying how our tax system can better incentivise entrepreneurship.

“It is vital that we create an economy that supports SMEs and entrepreneurs. The businesses they create are fundamental to having a dynamic and competitive economy and they create a huge amount of jobs, the taxation from which funds the running of the State.”