An Irish Government scheme called StartUp Refunds for Entrepreneurs (SURE) allows founders and entrepreneurs reclaim income tax they have paid over the last 6 years if they are starting a new business in Ireland. A tax refund of up to 41% of the amount invested in the new company is available.
As with all of these tax-based schemes there are many conditions an entrepreneur must meet before qualifying for the SURE scheme. The new company must trade from an Irish base and the business must be incorporated as a limited liability company in Ireland. Also, the company must be less than two years old from the date of incorporation to qualify.
This scheme is primarily aimed at those presently in employment who are considering setting up their own new business venture, but it may also appeal to the unemployed or the recently retired. The maximum investment in SURE is €700,000, which is €100,000 for each of the last 6 years as well as €100,000 for the current year.
This article from ThinkBusiness.ie explains the scheme in more detail and is worth reading if you think you may be eligible and are thinking of starting a new business in Ireland.
To read the finer print on eligibility for tax relief, visit the SURE section of the Revenue Commissioners’ website.
To check whether you are eligible, use the SURE online calculator.
If you combined a Tax Rebate with an equity crowdfunding campaign you’d certainly be adopting some clever fundraising techniques and could avoid going near the private equity companies until you had fully tested your minimum viable product.
As a scheme to stimulate entrepreneurs to start a new business in Ireland we’d give it a luke-warm response. The approach being adopted in the UK whereby investors can write-off some of their losses on investments in private companies appears eminently more sensible.
With an uncertain regulatory framework in Ireland for equity crowdfunding, at least the Irish Revenue authorities have come up with something definitive for Irish startup entrepreneurs as they start out on the uncertain and often lonely road to success.