merrion street

A public consultation on the role the tax system can play in encouraging entrepreneurship has been launched by Government this week. This public consultation has been launched as the Minister for Finance is considering how the tax system affects entrepreneurship generally as well as reviewing the tax expenditures currently available to entrepreneurs. 

I want to know what tax-related barriers you feel there is to establishing new enterprises, and what can done to overcome these barriers. I also want to know if, given the difference in the treatment of PAYE and self-assessed taxpayers, there is scope for greater alignment - Minister Noonan

We've answered key questions about this public consultation below....

Why is Government holding this public consultation?

There are currently a number of tax expenditures in place to encourage entrepreneurial activity in the Irish economy in recognition of the role that entrepreneurs can play in creating jobs, and the challenges that entrepreneurs can face when establishing new businesses. The purpose of the review is to assess what is and is not working effectively as well as considering options for change to better incentivise entrepreneurship.

When is the consultation open?

The public consultation is now open. The deadline for members of the the public and interested parties to submit their views is 14 July 2015.

How can I send in a submission?

The preferred means of response is by email to: enterprisetaxreview@finance.gov.ie 

Alternatively, you may respond by post to:

Tax & Entrepreneurship Review, Tax Policy Division, Department of Finance, Government Buildings, Upper Merrion Street, Dublin 2.

Please include contact details if you are responding by post. When responding, please indicate whether you are a professional advisor, representative body or member of the public.

What happens after the consultation?

Tax policy issues identified in this public consultation will form part of the Minister for Finance’s considerations in the context of Budget 2016.

Where can I find out more information?

See Department of Finance's website for more information on the public consultation.

Useful Information

• According to CSO Business Demography 2012 (the latest year available), in 2012 SMEs accounted for 99.7% of active enterprises, 68% of persons engaged, 50.3% of turnover and 46.2% of gross value added (GVA) in the business economy
• The latest Quarterly National Household Survey indicates that, as of Q1 2015, there are 89,600 individuals who are self-employed with paid employees and 229,200 self-employed individuals without paid employees out of the 1.93 million people in employment.
• Nearly 16.5% of those in employment are self-employed. Of the self-employed, over 25% are engaged in agriculture, forestry and fishing.
• Financial and insurance sector displays the largest concentration of employment in large firms with nearly 70% of persons engaged in that sector in large enterprises while the construction sector displayed the lowest concentration of employment in large firms with just 4% employed in large firms