Consultation on EIIS tax relief scheme for start-ups announced
EIIS is a tax incentive initiated in 2011 to provide relief of up to 40% on investments
A public consultation on the Employment Investment Incentive Scheme (EIIS), a State-backed initiative that allows small investors to claim relief on investments in early-stage companies, has been announced.
The Minister for Finance Paschal Donohoe said he was conscious that the coronavirus pandemic has affected investor confidence and therefore the flow of private equity into Irish companies. He invited interested parties to make submissions on how the scheme might be improved to take account of the changing business environment.
Submissions should be made no later than close of business on February 12th, 2021.
EIIS is a tax incentive initiated in 2011 to provide relief of up to 40 per cent on investments of up to €250,000 over four years, or €500,000 for investments over seven years.
The main objective of the scheme is to provide SMEs and start-ups with an alternative risk-based source of funding and to support the creation and retention of employment in companies.
Participating companies can raise up to €5 million a year under the scheme subject to a lifetime limit of €15 million.