By Caitlyn Buchanan, 16th February 2017
Start-up ventures and entrepreneurs are making an important impact on Ireland. They are changing the world and impacting the economy for the better but creating a successful business isn’t easy. Fortunately, a wonderful incentive has been announced by Ireland’s Revenue Commissioner and Local Enterprise office. SURE or the Start-up Refunds for Entrepreneurs is a tax refund scheme aimed to promote the creation of Irish based companies.
Under SURE you may be entitled to an income tax refund on your capital funding investment. If you were earning a working wage and paying PAYE income tax over the six years before the year you invested. Depending on the size of your investment, up to 41% of company funding could be refunded under SURE.
To be eligible for SURE you Must:
• Incorporate a new company and engage in trading activity(s)
• Invest money in the new company by purchasing new shares
• Have had mainly PAYE income in the previous four years (including currently in PAYE type employment, an unemployed person, a person recently made redundant or a retired person); and,
• Take up full-time employment in the new company either as a director or an employee
How Does It Work?
Let’s say an entrepreneur named Joe incorporated a new company and made an investment of €50,000 in the business in 2015. He qualifies for SURE because he was working and paying PAYE income tax over the previous 6 years. The initial €50,000 investment can be used to reduce paid income tax in one or more of those previous 6 years.
SURE is a tax refund on earning up to the invested amount.
Example 1; In this case, €50,000 invested
|Earnings||Tax Paid||Sure Refund|
Joe could claim his full SURE refund on his earning from 2014. Since his earnings in 2014 are equal to his investment of €50,000 he is not eligible to claim a SURE refund on any previous years.
Let’s say Joe wanted to invest a larger amount than one year’s income, he could then claim the refund against income earned in earlier years. A €100,000 investment made by Joe could be used to reduce his taxable income in one or more of the previous six tax years.
Example 2; In this case, €100,000 invested
|Earnings||Tax Paid||Sure Refund|
Follow the link below to find out how much SURE refund you could be eligible to receive.
You will need the following information to make an accurate calculation:
- Details of the investment amount
- Details of your income and PAYE tax paid over the last year. This information can be found on your P60 or P21. If your invested amount is greater than one year’s income, you will need your P60/P21 for more than one year.
When you incorporate a start-up company in Ireland you’re making an investment in Ireland’s economy. Our team is available to discuss your start-up needs and assist you with a variety of services to support your company goals. For more information on how to qualify for Start-Up Refunds for Entrepreneurs, or for information on registering a company in Ireland, please do not hesitate to contact the experts at Company Bureau on +353 1 6461625 or e-mail firstname.lastname@example.org.
Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.