The Australian Government facilitates an investor tax incentive to encourage investment in emerging Australian companies.
A company who qualifies as an Early Stage Innovation Company (ESIC) can use this when seeking investment from potential investors.
By investing in a qualifying ESIC, an investor can obtain a substantial tax benefit. Learn about investor tax incentives here.
Qualifying as an Early Stage Innovation Company
To be considered an ESIC, a company must qualify under a two stage self-assessment:
- Early stage company test
- Innovation test
Noting that it is possible to complete a self-assessment and promote your status with this documentation. However, given the potential tax related risks for both parties in the case that the self assessment was incorrect, obtaining an ATO private ruling to verify the status is advised. This is the responsibility of the company, not the investor.
About the Nifty ESIC ATO private rulings offering
Obtaining an ATO private ruling to verify your ESIC status can be timely and costly - that’s why we’ve introduced this service to the Nifty platform.
With Nifty ESIC, you’ll get an eligibility questionnaire to quickly assess if you should proceed, and if so, preparation and submission of an ATO private ruling by PwC specialists.
Having a private ruling from the ATO is an additional safeguard for both potential investors and the company to feel comfortable that the ESIC criteria has been successfully met.
Benefits of using Nifty and PwC
Here’s why you might consider this service:
- All private rulings are compiled by PwC tax specialists with a high success rate of obtaining ESIC ATO private rulings
- PwC tax specialists have knowledge and experience relating to the ESIC tax rules and obtaining ATO private rulings
- We’ll assist with the process of obtaining a ruling and help you understand what it means for potential investment
Learn more about our service, including pricing, here.
Visit the ATO’s website to read more about qualifying as an early stage innovation company.