Joanna Tuffy
Question:98. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on an income tax exemption (details supplied). [8548/14]
View answerWednesday, 19 February 2014
Questions (98)
Written answers
The Start Your Own Business (SYOB) scheme, introduced by the Finance (No. 2) Act 2013, provides for relief from Income Tax for long term unemployed individuals who start their own new unincorporated business. The scheme provides an exemption from Income Tax up to a maximum of €40,000 per annum for a period of two years to individuals who set up a qualifying business; having been unemployed for a period of at least 12 months prior to starting the business. The relief is available from the 25 October 2013 to 31 December 2016 and may be claimed on the return of income filed with the Revenue Commissioners.
The SYOB relief only applies to Income Tax and does not extend to USC and PRSI. USC and PRSI will therefore be payable on any profits earned in the new business.
Individuals qualify for this relief if:
they have been unemployed for twelve months or more, and
during that period they were in receipt of any of the following
- crediting contributions
- jobseeker's allowance
- jobseeker's benefit
- the one-parent family payment
- partial capacity payment.
Periods of time spent on certain training courses and schemes will be treated as part of a period of unemployment. If an individual was entitled to jobseeker's allowance or jobseeker's benefit immediately before starting on the training course or scheme, then any allowance paid for attending such a course will be treated as if it were jobseeker's allowance or jobseeker's benefit.
Examples of training courses and schemes would include FÁS training courses, Community Employment Schemes, Job Initiative and Back to Education Schemes. Full details of the scheme are available on the Revenue website at www.revenue.ie.