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The Employment & Investment Incentive Scheme (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.
What investments are eligible?
EIIS scheme investments are available to the majority of small and medium-sized trading companies, however, certain trading and service 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.
Who can benefit from the tax relief?
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 two years before and four years after making the investment, connected with the company or any of its subsidiaries.
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.
For further details on how you or your business might benefit from an EIIS contact Mark Gibbs