Amendments in Finance Act 2024 further extend the tax relief available for start-up companies.
Amendments in Finance Act 2024 further extend the tax relief available for start-up companies. This relief is for qualifying new businesses, specifically in the companies first five years of trading, provided the corporation tax liability is under €40,000 in those first few trading years.
Key points include:
- Extended PRSI Criteria: From the 1st of January 2025, qualifying criteria for corporation tax relief will now include up to €1,000 of Class S PRSI per individual, in addition to the existing reference to Employers PRSI. This extension ensures that PRSI paid by owner-directors can now be utilised for relief eligibility. Marginal relief will be available for companies with a corporation tax liability between €40,000 and €60,000.
- Carry-Forward Relief: Start-ups businesses can benefit from up to €40,000 per year in corporation tax liability relief, with unused relief carried forward within a 5 year window, providing tax support during the critical early years of trading to encourage growth.
- Longer Support Window: This relief applies to start-ups within their first five years of business, helping companies maintain financial health while also encouraging a healthy cash flow during the early years of trading.
This update signals ongoing support for Ireland’s start-up businesses and entrepreneurs, recognising their important role in business innovation and economic growth.
At EcovisDCA, we’re here to help your start-up succeed. For expert guidance on how these tax relief updates can benefit your business or to discuss your specific needs, please don’t hesitate to contact us.
