From, 1 July 2016, the Australian Government introduced tax incentives for investors purchasing new equity in a qualifying Early Stage Innovation Company (ESIC®). The early stage company must meet the eligibility criteria at the time you invest. The tax incentives on new shares are provided to support qualified early stage companies raise finance more efficiently.
Crowd88 displays the following statuses against qualifying Early Stage Innovation Company’s on our website. We do this in conjunction with to assist Investors in determining whether a company may qualify as an ESIC®
ESIC® Statuses
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ELIGIBILITY FOR COMPANIES
For an investor to be entitled to the tax incentives, the company must qualify as an early stage innovation company immediately after the new shares are issued to the investor. ESIC® qualifying companies can be more attractive to investors.
A company will qualify as an ESIC® if it meets both the early stage test and either the 100-point innovation test or principles-based innovation test.
INCENTIVES FOR EARLY-STAGE INVESTORS
Eligible investors are entitled to a non-refundable carry forward tax offset equal to 20% of the amount paid for their qualifying investments and a modified capital gains tax (CGT) treatment. Eligible Investor Caps and Conditions Apply.
The onus is on the investor to confirm that the company qualifies as an ESIC® at the relevant test time, being the time of investment
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