Minister for Finance Michael Noonan’s budget for 2014 had some interesting news for the tech sector. The Minister committed to retaining the 12.5% corporate tax rate but responded to criticisms of the ‘Dutch-Irish’ sandwich accounting practices that saw companies like Apple pay little to no tax. Under new proposals Irish-registered companies will not be allowed to operate as ‘stateless’ entities, thus avoiding tax.
There was good news for anyone thinking of starting their own business. In response to Ireland having a below average number of entrepreneurs compared to the European average, there will be Capital Gains Tax relief "equal to the lower of the CGT paid on the previous asset disposal or 50% of the CGT due on any gain from the future disposal of the new investment. EU state-aid approval is required for this measure".
Anyone who has been unemployed for at least 15 months will be eligible for a Start Your Own Business scheme, which comes with a two-year income tax exemption.
In a separate statement, Minister for Communications, Energy and Natural Resources Pat Rabbitte said €5 million would be set aside to assist in the rollout of a national trading-online voucher scheme, aimed at getting 2,000 businesses online.
In preparation for the design of a national scheme, a two phase pilot will be launched in Dublin next week. Under the pilot scheme vouchers of up to €2,500 will be provided to 50 small companies to help them develop an online trading presence. The scheme will be administered by the Dublin City Enterprise Board and will target small enterprises that employ less than 10 people and have a turnover of less than €2 million per annum.
TechCentral Reporters
Subscribers 0
Fans 0
Followers 0
Followers