James O'Connor (Cork East, Fianna Fail)
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21. To ask the Minister for Finance if his Department will consider a new tax incentive for start-up businesses in rural towns that are hosting refugees in order to increase employment and job opportunities in those areas; and if he will make a statement on the matter. [21467/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am happy to advise the Deputy that there is already a tax incentive for new start up companies - Section 486C of the Taxes Consolidation Act 1997 provides relief from corporation tax for start-up companies in their first years of trading.

I extended this relief in last year's Finance Act for a period of five years, to end-2026. In view of the challenges facing small businesses as a result of the pandemic and related public health restrictions, I also enhanced the relief to apply to qualifying companies in their first five years of trading, an increase from the previous three-year claim window.

The objective of this tax relief is to support new business ventures in their critical early years of trading, thereby supporting the creation of additional employment and economic activity in the State.

The relief is granted by reducing the corporation tax payable on the profits of the new trade and on any gains on the disposal of assets used for the purposes of the new trade. The amount of relief available is directly linked to the amount of Employer PRSI paid, in order to ensure a link to employment creation.

This tax relief is open to all eligible businesses, wherever they are located in the country, and therefore would be available to businesses in rural towns as described by the Deputy.