New Employment and Investment Incentive Scheme (EIIS)
The new Employment and Investment Incentive Scheme (EIIS) has been approved by the European Commission and a Commencement Order was recently granted by the Minister for Finance. This scheme which will run concurrently with the old Business Expansion Scheme (BES) until 31 December, 2011 will replace the BES scheme from then on.
The new scheme which will grant tax relief of 41% over a 3 year period is open to all trades with a few exceptions. It is therefore much broader in its scope than the existing BES scheme which is limited to manufacturing and internationally traded services businesses.
If you are considering raising finance to expand your business this new scheme may be suitable for your company.
A qualifying company can raise up to €10 million under the EIIS (the previous limit was €2 million) subject to a maximum amount raised in any one year of €2.5 million.
From an investors point of view the EIIS has a shorter investment term of 3 years than the BES which was 5 years. The tax relief available to investors of up to 41% is given on a scaled basis i.e. 30% in the year of investment and a further 11% in the year following the 3 year investment period.
If you feel that your company may be able to avail of this new scheme then please contact Noel Murphy who will be glad to discuss matters further with you on 021 4310266 or firstname.lastname@example.org.