Employee & Investment, Incentive Scheme

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The Employment & Investment Incentive Scheme (EIIS) allows you to obtain income tax relief on investments in qualifying companies.  

EIIS allows an individual investor to obtain tax relief of up to 40% in respect of investments made for shares in certain companies, up to a maximum of €150,000 per annum.

Initially relief is allowed on thirty fortieths [30/40] of the EII investment in the year the investment is made. Potentially, this can result in a tax saving for the investor of up to 30% of the investment. Relief in respect of the further ten fortieths [10/40] of the EII investment will be available in the fourth year after the EII scheme investment was made providing that certain conditions are met . Potentially, this can result in a further tax saving for the investor up to 10% of the investment.

Before any investor can receive their relief, the company must apply to Revenue for approval. If Revenue is satisfied that all aspects of the scheme are met, certificates will be issued to the company that will allow relief to be claimed by the investor.

In general, qualifying investor is an individual who;

  • Is resident in the State for the tax year in respect of which he/she makes the investment. (in certain circumstances, a non-resident may qualify if they have income charged to Irish tax).
  • Subscribes on his/her own behalf for eligible shares in a qualifying company and 
  • Is not, throughout the period of 2 years before and 4 years after making the investment, connected with the company or any of its subsidiaries.

The EII scheme is available to the majority of small and medium-sized trading companies, however, certain trading activities are excluded from the EII scheme.

The company must use the money raised from the share issue for the purpose of carrying on a qualifying trade, or if the company has not yet commenced to trade in incurring expenditure, on research and development. In addition, the use of the funds must contribute directly to the maintenance or creation of employment in the company.

Before any investor can receive their relief, the company must apply to Revenue for approval. If Revenue is satisfied that all aspects of the scheme are met, certificates will be issued to the company that will allow relief to be claimed by the investor.

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