Income Tax Act 2007 section 257MH

The number of employees requirement

Section 257MH sets out the maximum number of employees a social enterprise (or its group) may have at the time an investment is made, in order to qualify for social investment tax relief.

• A single social enterprise must have fewer than 250 full-time equivalent employees at the date of investment
• Where the social enterprise is a parent company, the combined full-time equivalent employees of the parent and all its qualifying subsidiaries must also be fewer than 250
• Part-time employees are counted as a just and reasonable fraction of a full-time employee, and directors count as employees for this purpose
• Employees on maternity, paternity or parental bereavement leave, and students on vocational training, are excluded from the headcount