Broadly, investors in ‘early stage innovation companies’ (ESICs) may be eligible for:
- a 20% tax offset (up to $200k) of the amount invested in respect of Australian tax; and
- an Australian Capital Gains Tax exemption on shares held for 1 to 10 years.
Most companies that appear on the platform qualify as ESICs.
Jelix makes every effort to structure our investments to allow qualified investors to take full advantage of ESIC tax breaks where they apply. However, Jelix does not take into account the specific circumstances of any investor. Prospective investors should therefore obtain professional tax advice that takes into account their specific circumstances before making the decision to invest.
This summary is necessarily general in nature and is not intended to be either a definitive or an exhaustive statement of the possible tax treatment of investing in companies through the platform.
Please see the Australian Tax Office website for details of the tax incentives for early stage investors.
Qualifying as an early stage investment company (ESIC)
Jelix requests investee companies to provide their accountants opinion that it qualifies as an ESIC (unless there is an obvious disqualification) to support our investors ESIC tax claim.