SEED CAPITAL SCHEME (SCS)

The Revenue’s Seed Capital Scheme (SCS) allows for promoters of qualifying start-up companies to claim a rebate on investment made in their new enterprise based on the individual’s income tax payments for the previous 6 years.  The individual claiming relief must be a full time employee or a full time director of the company.

The Seed Capital Scheme is an attractive support for new companies where the entrepreneur is investing their own money into the business.

ROLE OF ENTERPRISE IRELAND IN ISSUING A SCS CERTIFICATE

Enterprise Ireland’s role is to certify that a project is a bona fide new venture, which may be eligible for grant aid. It is responsible for the provision of certificates in respect of certain qualifying trading operations.

There are a number of government departments and agencies responsible for certifying relevant companies for the Seed Capital Scheme including Enterprise Ireland. Enterprise Ireland is only responsible for certifying companies that are engaged in:

  • Manufacturing
  • Internationally traded services
  • Recycling activities
  • Research and development operations with a view to undertaking a qualifying trade

Please note the issue of a certificate for SCS purposes by Enterprise Ireland is no guarantee, and does not imply, that Revenue will approve a rebate under the Seed Capital Scheme.

ELIGIBILITY: If you are an employee, an unemployed person or were made redundant recently and are interested in starting your own business you may be entitled to avail of the tax refund available under the Seed Capital Scheme.   An employee who leaves employment and invests by means of shares in a company, which carries on a new qualifying business, may claim a refund of income tax paid in previous years.