Notice of public consultation on the Employment Investment Incentive

Department of Finance to host stakeholder webinar event on the Employment Investment Incentive (EII)

Following the response to the call for submissions on the future of the Employment Investment Incentive (EII), the Minister for Finance, Paschal Donohoe TD, has today (Monday) announced that the Department of Finance will be hosting a webinar event to allow for further direct engagement with stakeholders.

The event, which will be launched by the Minister, is scheduled to take place over three two-hour sessions on the afternoon of Tuesday 30th March and morning and afternoon of Wednesday 31st March.

The sessions will cover:

Session 1 (Tuesday 30th March pm)

Discussion on broadening eligible funds from Irrevocable Trusts/Designated Investment Funds to include other relevant regulated fund structures

Session 2 (Wednesday 31st March am)

Discussion on how best to ensure Renewable Energy Support Scheme (RESS) might benefit from EII (plus associated issues).

Session 3 (Wednesday 31st March pm)

General discussion covering the following:

(i) How EII might respond to the changing environment in which it operates, including providing assistance to start-ups and young firms as they seek to emerge from the impact of Covid-19.

(ii) Any other matters considered relevant.

Minister Donohoe said today:

‘In my Budget 2021 speech I committed to engaging with stakeholders on the future of the Employment Investment Incentive. Today I am happy to announce the second phase of my Department’s public consultation process which will involve a stakeholder webinar event where the views of investors, businesses and employers, as to how EII can be enhanced, will be further discussed’.

Attendance

Individuals and businesses who made a submission to the consultation process will be contacted in the coming days with further information regarding registering for the event. Other interested parties should contact the Department of Finance at EIIconsultation@finance.gov.ie and request to be added to the event mailing list. Places may be limited.

ENDS

Notes for Editors

The Employment Investment Incentive (EII) is a tax incentive initiated in 2011 providing tax relief of up to 40% in respect of investments made in certain corporate trades. The main objective of EII is to provide SMEs and start-ups with an alternative risk-based source of funding and to support the creation and retention of employment in SMEs across the economy.
In 2018 and 2019, substantial changes were made to the scheme and associated legislation. These included the introduction of a self-assessment administration model; full income tax relief (40%) being provided in the year in which the investment is made and an increase in investment limits.
The main features of the incentive include:

- Tax relief of up to 40% is available on investments of up to €250,000 for investment over four years or €500,000 for investment over seven years.

- Companies may raise up to €5 million per annum, subject to a lifetime limit of €15 million.

- SMEs in all geographic areas of the country can qualify for the incentive.

- All small and medium companies less than seven years old in qualifying trades may use the incentive, as may certain older companies that are expanding into new products or geographic markets.

The recent call for submissions on the future of the EII received over 30 responses from businesses, investors and private individuals.
Submissions and other contributions to the consultation process will be subject to the provisions of the Freedom of Information Acts. The Department may receive requests for any or all information supplied as part of this process. Parties should also note that responses to the consultation may be published on the website of the Department of Finance in full.