Ireland is set to reduce its rate of Capital Gains Tax to 10% for startups as of 2017, according to the Irish Independent.

Concurrently, the earned income tax credit for self-employed people will be increased from €550 to €1650. This will match the credit given to employees in the country who are on the PAYE system.

PAYE, also known as Pay as You Earn, enables people to pay their tax and national insurance contributions automatically through their wages. Tax and national insurance contributions are deducted from pay before the money is deposited into the employee’s bank account.

The news was announced by Mary Mitchell O’Connor, minister for jobs, enterprise and innovation in the Irish government, in a speech she made at the Small Firms Association annual conference.

The change in capital gains tax would follow an earlier change announced in the 2016 Budget that reduced it to 20% on the sale of all or part of a business with a limit of €1m in chargeable gains.