As the Deputy is aware, I announced the Start Your Own Business incentive in the recent Budget. This incentive is an exemption from Income Tax for individuals who have been long-term unemployed and start a new, un-incorporated business. An exemption from Income Tax will be provided on profits up to a maximum of €40,000 for the first two years of trading. However, USC and PRSI will continue to be payable. If a loss is incurred then loss relief will be available in the normal manner.
The business must be un-incorporated i.e., the individual must be a sole trader. In order to claim this relief, the individual must file a tax return notwithstanding that there may be no liability to tax. In the Budget speech I stated that the individual must have been unemployed for a period of at least 15 months prior to establishing the business. However, as I stated in my opening speech at Second Stage of the Bill, I have decided to reduce the qualifying period of unemployment to 12 months. This will be dealt with in a Committee Stage amendment.