Taxes Consolidation Act 1997 section 502

The relief (Chapter 4)

Section 502 defines key terms used in the employment investment incentive scheme (EIIS), sets out the amount of relief available to qualifying investors, specifies maximum investment limits, and provides for the conditions that must be met to retain the full relief.

• The section defines terms including "qualifying employee" (an employee other than a director working at least 30 hours per week in employment capable of lasting at least 12 months), "subsequent period" (the three years following the date shares are issued), and various employment and pay thresholds used to measure whether employment conditions are met.
• The amount of relief depends on when the shares are issued: for shares issued up to 8 October 2019, relief was split 30/40ths upfront and 10/40ths after three years; for shares issued between 9 October 2019 and 31 December 2023, relief is given on the full amount upfront; and for shares issued from 1 January 2024, relief ranges from 50% to 125% of the amount subscribed depending on the type of investment.
• The maximum qualifying investment on which relief may be claimed has increased over time, from €150,000 in 2019 to €1,000,000 from 2025 onwards, and the investor must e-file such information as Revenue may require in relation to the investment.
• To retain the full relief, employment or research and development conditions must be satisfied by the end of the subsequent period; if these conditions are not met, an amount equal to ten fortieths of the relief granted is either withheld or withdrawn.