People who start a business will now be able to claim back 41pc of tax they paid in the six previous years under the new SURE tax refund initiative unveiled today by Finance Minister Michael Noonan and Jobs Minister Richard Bruton.
The ‘StartUp Refunds for Entrepreneurs’ or SURE initiative allows entrepreneurs to obtain a refund from the Government of up to 41pc of the capital they invest in starting up a business.
The SURE scheme operates as a refund of income tax paid by the person starting the business in the six years prior to the business being started.
All income tax paid in those six years can be claimed as a refund under the scheme, subject to an overall limit of 41pc of the total investment in the business.
The move is calculated at encouraging people – particularly in PAYE employment – to consider starting their own businesses. It is also aimed at people who are unemployed or retired.
90,000 new jobs could be generated by start-up businesses
The Irish Government has set a target of creating more than 90,000 extra jobs from start-ups over the coming years.
“Two thirds of all new jobs across the economy are created by start-ups in their first five years of existence, and that is why we are putting in place a range of new measures specifically aimed at encouraging more people to start their own businesses,” Jobs Minister Richard Bruton TD said.
“In Ireland we have great start-ups, we just don’t have enough of them. Through SURE, the Government is directly offering cash to people who are considering starting their own business, up to a value of 41pc of their total investment. We are determined to ensure that as many people as possible are aware of this generous scheme so that more people start businesses and help create the jobs we need.”
The Government has created a new website with an online calculator to help budding entrepreneurs calculate how much they can receive under the scheme. The calculator will exist on a range of Government and business-related websites and will have a print-out function to bring paperwork before banks and potential investors.
Finance Minister Michael Noonan said the initiative will help to counter the difficulty in sourcing seed capital in Ireland.
“Officials have been working closely to simplify the scheme in order to make it easier to understand and communicate to interested entrepreneurs,” Noonan said.
“Entrepreneurs who start their own business could receive a refund of tax previously paid of up to 41pc of the capital invested in their new company. The scheme will also be marketed by the Local Enterprise Offices, who will be only too happy to assist any entrepreneurs with any queries they may have.”