Three Year Start Up Relief provides corporation tax relief for profit making start-up companies which create and maintain jobs. The relief is being extended a further three years, until the end of 2021.
I feel a little more creativity is required around reliefs to incentivise business creation.
If you happen to be considering starting a business, one of the last concerns on your mind is how much tax you're going to have to pay on profits, in the exceptionally rare case that a startup makes a profit in the first three years.
Social safety nets for founders, reduced rates of employers PRSI, maybe reduced rates of income tax for employees to work at startups (to let us compete with higher salaries an MNCs) etc. would be much more effective I think.
I've said for years that nobody ever went broke by paying 12.5% Corporation Tax. This is one of the silliest provisions in the tax code, particularly as it's now capped that the amount of employer's PRSI the company pays in each year.