Entrepreneurship report urges income tax rate of 15-20%

The Entrepreneurship Forum, chaired by cloud visionary and RTÉ dragon Sean O’Sullivan, has recommended a long-term flat rate of tax for entrepreneurs.

A total of 69 recommendations have been put forward by the forum in a report published today, including a long-term flat tax of 15–20 per cent on all types of income.

The report also recommends the use of unoccupied and Nama buildings for co-working space, a national education strategy for entrepreneurship at all levels of the education system, tax incentives for investment in enterprise, and mandatory training in commercialisation of business ideas for all third-level science, technology, engineering and maths students.

"Two thirds of all new jobs come from start-up businesses in the first five years of their existence. Entrepreneurs are the heroes of the economy, creating businesses, jobs and growth from which the rest of us benefit, and Ireland has some amazing entrepreneurs, but not nearly enough," Minister for Jobs, Enterprise and Innovation Richard Bruton said.

However, Mr Bruton said implementing all recommendations may not be possible.

“The foundation of a strong startup community is a culture of citizenship where individuals embrace success, give back, and take responsibility to build a better society. This Report is a call to action,” forum chair Mr O’Sullivan said.

Frank O’Keeffe, partner-in-charge of the EY Entrepreneur of the Year programme, said the government’s concerted effort to engage with entrepreneurs on the creation of the Entrepreneurship Forum Report was a welcome move towards positive, relevant change for Ireland’s entrepreneurial community.

“The recommendations have struck a balance between short term wins to kick start new businesses and longer term incentives for entrepreneurs to keep their businesses and jobs in Ireland – both of which are critical to build a flourishing entrepreneurial ecosystem across the island,” he added.

The Entrepreneurship Forum was established last year as part of the Government’s action plan for jobs.