Startup schemes like SEIS in the UK compared to the world
Several countries worldwide have similar schemes to the UK’s Seed Enterprise Investment Scheme (SEIS), designed to encourage investment in early-stage startups and provide tax incentives to investors. Here are a few examples:
- United States: In the United States, the equivalent of SEIS is the Qualified Small Business Stock (QSBS) program. Under this program, investors who purchase qualified small business stock (QSBS) may be eligible for a 100% exclusion of capital gains taxes on the sale of that stock.
- Canada: Canada has a few programs that provide tax incentives for investors in early-stage startups, including the Canadian Investment Tax Credit (CITC) and the Ontario Innovation Tax Credit (OITC). These programs offer tax credits to investors who provide funding to eligible businesses.
- Australia: In Australia, the Early Stage Venture Capital Limited Partnership (ESVCLP) program provides tax incentives for investments in eligible early-stage venture capital limited partnerships. Investors may be eligible for tax exemptions on income and capital gains from their investments.
- Israel: Israel has several programs to support startups, including the Angel Investors Tax Benefit program, which provides a tax benefit of up to 50% for investments made by Israeli angel investors in qualifying startups.
- France: In France, the Jeune Entreprise Innovante (JEI) program provides tax incentives for startups that meet certain criteria, including exemption from specific social security contributions and reductions in corporate income tax.
These are just a few examples of SEIS-like schemes that exist around the world. Each program has its rules and eligibility criteria, but they share a common goal of encouraging investment in early-stage businesses and supporting innovation and entrepreneurship.