The Minister told the Dáil that there will be no change to the country's 12.5% corporate tax rate and he said he welcomed recent comments by European finance ministers, who understand the 'importance of this issue to Ireland.'
Minister Lenihan said that the Business Expansion Scheme, which helps companies to gain access to capital investments, is to be revamped and renamed as the Employment and Investment Incentive. The new scheme needs approval from the European Commission, and the existing scheme will continue until this has been received.
Under the new scheme, Mr Lenihan said that the limit that can be raised by companies will be increased from €2m to €10m. The amount that can be raised in any 12 month period will be increased from €1.5m to €2.5m. Certification requirements will also be simplified.
The Minister said the three year corporation tax exemption for start-up companies starting a new trade in 2011 will be extended and amended so that the relief will be linked to the amount of employers' PRSI paid by the company.
He said this change will focus the relief on employment creation, rewarding companies that create jobs.
