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Support for domestic business and entrepreneurship in Budget 2024 welcome but more targeted measures required, according to Deloitte

Budget 2024 is another welcome step to bolster Irish domestic businesses and entrepreneurship, however more focus on simplification is needed

10 October 2023 Budget 2024 has been framed against the backdrop of a turbulent economic environment. Speaking today Daryl Hanberry Head of Tax & Legal and a partner at Deloitte, said; “It is crucial that Ireland continues to focus on the supports necessary to foster and grow our entrepreneurial community. In particular Deloitte was calling for a tax system to facilitate start-ups but also to incentivise founders to remain and scale up their businesses. We are looking forward to engaging with the Minister on the operation of the Angel Investors scheme. Additionally we would have some concerns around cost pressures from increased rates of PRSI, the national minimum wage which will impact this sector disproportionality and how the KEEP scheme can be enhanced to be more effective.”

Reacting to the Budget today, David Shanahan, Partner, Tax & Legal said; “We welcome the package of measures introduced today which will benefit indigenous businesses such as changes to R&D tax credit regime, improvements to Employment Investment Incentive Scheme (EIIS) and the introduction of a reduced rate of capital gains tax for angel investors. Various stakeholders had called for changes to help unlock investment in indigenous companies and it is encouraging to see they have been heard.

Shanahan concluded; “While the above measures are very welcome there is a need for a further comprehensive suite of measures to support entrepreneurship and to encourage founders to retain ownership and to scale their businesses. One such example would be a lower rate of income tax on certain qualifying dividends.

“Another area for consideration would be a series of supports to encourage more companies to IPO and to retain their listings on the Dublin Euronext stock exchange. A measure which could have an impact, as part of broader measures, would be the removal of stamp duty on listed shares.
We will engage with the Minister, his officials and Government colleagues to advocate for a more comprehensive package of supports for indigenous businesses”.