Technology Ireland welcomes changes to the Employment Investment Incentive scheme
Technology Ireland, the Ibec group that represents the technology sector, has welcomed changes to the Employment Investment Incentive (EII) scheme which Minister Donohoe stated would be designed to make the scheme more attractive to investors and benefit companies in their start-up years.
Responding to today’s Budget announcement, director of Technology Ireland, Una Fitzpatrick said: “While we are disappointed that no signal of intent was given to serial entrepreneurs via improvements to the CGT entrepreneurs relief, we do welcome changes to the Employment Investment Incentive (EII) scheme and await clarity on these changes in the forthcoming Finance Bill.”
Ms. Fitzpatrick also welcomed the allocation of €5.5 million towards the establishment of the new Media Commission; the introduction of a new digital transition fund, which will help encourage the development and adoption of data analytics and AI – a crucial growth area for Irish tech; a new tax credit for the digital gaming sector of 32% on expenditure on projects up to €25 million and the extension from four years to seven years of tax relief on shares bought in smaller companies, will help support investment in start-ups and SMEs.
Technology Ireland stated in its pre-budget submission that Budget 2022 needed to recognise and support the technology sector as the primary engine in driving Ireland’s recovery, develop Ireland’s FDI growth model to attract and retain multinational technology companies, back entrepreneurship and support innovation and R&D, and help Ireland embrace its role in EU digital regulation, strengthen regulatory capacities and lead on digital policy issues at an EU level.
“The technology sector in Ireland has undoubtedly been one the keystones of Ireland’s economic and social growth in the past thirty years. Ireland is now the envy of many countries, but our current achievements are no guarantee of future success. Ireland’s technology sector is the engine that will drive Ireland’s recovery. It is vital that every aspect of government policy is focused on clearing the way for that recovery.”