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Technology Ireland Indigenous Tech Companies Fiscal Asks in Budget 2018

27 July 2017
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The Ibec Budget 2018 submission was launched this week (press release and full 36-page submission here). It contains key competitiveness asks for companies across the spectrum in the technology sector. Overall, we identify five major proposals for Budget 2018:

  • Additional fiscal space is available and must be used to increase investment;
  • The Budget must be Brexit-proofed;
  • Ireland must focus on creating a high-skilled economy;
  • The Government must defend Ireland's foreign direct investment model where necessary, and improve it where possible;
  • We must put in place proper 21st century infrastructure to make sure Ireland maintains its competitive edge.

The Budget submission is a primary mechanism for us to focus on fiscal measures to improve the growth and competitiveness environment for indigenous technology companies. While there are strong asks throughout the Ibec Budget 2018 submission, they would like to draw your attention to the following fiscal asks for the indigenous technology community:

  • Improve on commitments made with regards to Capital Gains Tax entrepreneurs' relief in the Programme for Government by increasing the lifetime cap on gains from €1 million to €15 million. [Cost: €40 million]
  • Introduce a version of the SEIS scheme similar to its UK equivalent. This would remove a barrier to small start-up businesses, while also encouraging first-time investors into the market. [Cost: €10 million]
  • Introduce a simplified R&D tax credit meaning that smaller firms are better able to overcome funding constraints on their innovative activity. [Cost €10 million]
  • Review the inequitable stamp duty treatment of shares in Irish owned companies. [Cost: Revenue neutral in 2018]
  • Introduce an enterprise management incentive scheme for smaller firms. In recent weeks the Swedish Government received European Commission clearance to abolish tax on stock options at companies that are younger than 10 years, have fewer than 50 employees, and revenue and a balance sheet of below €8 million. This should be replicated here. [No immediate cost but rising to between €1 million and €5 million in future years.]