News and Announcements
Investors Can Now Receive 20% Tax Offset on Their Investments
- Published June 19, 2017 12:00AM UTC
- Publisher Wholesale Investor
- Categories Company Updates
The upcoming ESIC Tax Offset deadlines, as recent media indicates that more attention is needed on this new incentive. As you probably know, if you qualify, you can use this ESIC Tax Offset to your advantage when raising capital.
If you are an Early Stage Innovation Company (ESIC) then the 30th June and 31st July are key dates.
Make sure you check your ESIC eligibility, first of all. You can check out the ATO website, or talk to a consultant to find out (details below).
Getting funds invested and shares issued before June 30 may have a big impact on your investors ability to claim the ESIC benefits.
Then the company must lodge with the ATO by the 31st July.
ESIC Tax Offset Overview
Just over a year ago the government introduced tax incentives for early stage investors whereby from July 1, 2016, if they invest in a qualifying early stage innovation company (ESIC), they may be eligible for tax incentives.
To qualify for the tax incentives, investors must have purchased new shares in a company that meets the requirements of an ESIC immediately after the shares are issued. The shares must have been issued on or after July 1, 2016.
A company will qualify as an ESIC if it meets both:
1) the early stage test; and
2) either the 100-point innovation test or principles-based innovation test.
Review your eligibility and provide investors with a position statement.
By being registered with ESIC your investors get a 20% tax offset of up to $200,000, plus altered CGT status which can reduces CGT to 0%. Sophisticated and professional investors can invest up to $1,000,000, and other investors can invest up to $50,000. There are exclusions to check on for affiliate investors, and investors with over 30% shareholdings.
Support Services
ATO Website:
BIIG Trend is a specialist financial firm, focused on innovation. Biig Trend are assisting with several Wholesale Investor clients with ESIC eligibility assessments, position statements, investor communications, and upcoming lodgements.
Company Updates
The Detachment Premium vs. The Acqui-hire: Navigating Contradictions for a Higher Exit Value
Planning your business exit? A crucial question emerges: is your business more valuable thriving without you, or is your team’s talent precisely what an acquirer seeks? This article explores the “Detachment Premium” vs. “Acqui-hire” strategies, helping you navigate these contradictions for a higher exit value. Learn which path is right for your industry and how to prepare for your optimal sale.
Jamie Dimon: Navigating a World of Uncertainty – From Recession Risks to Geopolitical Tensions
In a candid interview with Bloomberg, JPMorgan Chase CEO Jamie Dimon offered a nuanced perspective on the current global economic landscape, a panorama he describes as rife with “a lot of uncertainty.” From lingering recession fears in the US to the complex interplay of trade wars and geopolitical tensions, Dimon, ever the realist, painted a […]
Wholesale Investor and CapitalHQ Sign Exclusive Master Licence with inQ Innovation Global to Provide Access to India’s High-Growth Startup Market
Wholesale Investor and inQ Innovation have forged a strategic partnership, granting global investors direct access to India’s rapidly expanding innovation ecosystem. This exclusive three-year agreement leverages CapitalHQ’s technology to streamline fundraising for Indian startups and expand deal flow for WI’s 45,000-strong investor network, aligning with India’s 2030 Vision for economic growth and innovation.
Backed By Leading Investment Groups and Family Offices
