Singapore to boost local businesses with PIC fundings

For companies operating in Singapore, which also include sole-proprietorships, partnerships; Singapore strives to improve local businesses productivity through its PIC scheme and Bonus. PIC means Productivity and Innovation Credits, and the local government is extending this scheme from Year of Assessment 2015 until YA 2018.

Many are already taking initiatives to reach and provide for businesses which are eligible for IRAS PIC fundings, but have not capitalize on this support.

The IRAS PIC Bonus encourages small to medium enterprise to take advantage of the PIC scheme to invest in innovation and productivity.Businesses that spend a minimum of $5,000 in PIC activities in one year will receive a dollar-for-dollar matching cash bonus.

The PIC Scheme supports investments in innovation and Productivity. Businesses can enjoy huge tax savings in the forms of Cash

• Payout and/or Tax Deduction when they invest in any of these six activities:
• Training of Employees
• Registration of Patents, Trademarks,Designs and Plant Varieties
• Research and Development Activities
• Investment in Design Projects Approved by the Design Singapore Council
• Acquisition or Leasing of PIC Automation Equipment
• Acquisition of Intellectual Property Rights

How PIC benefits you?
400% Tax Decution: You can enjoy 400% tax deduction on up to $400,000 of your spending each year in each of the six activities above.

Cash Payout Option
Instead of claiming the tax deduction, you can convert to non-taxable cash. Our Singapore government will support 60% of the project value to you. This option might be more preferable for business with low or no taxable income. In order to qualify for cash payout, your company must have 3 CPF contributions ( means to employ three local employees ) and has operation in Singapore.

Questions?
For businesses who are still unsure on how PIC Bonus works, https://www.iras.gov.sg/irasHome/ for a more detail understanding.