AVAIL GOVERNMENT MONEY TO MORE GROW YOUR BUSINESS WITH
Yes – The Singapore Government is liberal in giving away Productivity and Innovation Credit (PIC) Scheme Grants – Tax Reduction; Cash Payout and PIC Bonus. Added to that with the PIC Plus Scheme all the PIC Scheme Benefits have been extended and expanded in size till 2018. If you are a Sole Proprietorship, Partnership, Enterprise, Company or Corporate Entity running your business in Singapore soil, you become automatically eligible.
The professional specialists in helping lots of Singapore businesses to avail PIC Scheme Cash Grants is by your side. So you can confidently entrust the responsibility of the comprehensive job of preparation of your PIC Claim Application to finally see that you get maximized PIC Scheme and PIC Plus Scheme Benefits.
Your Singapore Business (even if it is owned by a foreign national and has a branch or unit running here) can avail the following PIC Scheme Benefits:
400% of Qualifying Expenditure (categorized under 6 heads) as Tax Reduction up to $400,000 till 2015 and $600,000 from 2016 to 2018; or 60% of Qualifying Expenditure as Cash Payout on $100,000 working out to $60,000 till 2018 as Free Money (non-taxable); and automatic crediting of PIC Bonus annually to your account, based on the Qualifying Expenditure of $5000 per year from 2013 to 2015 with maximum of $15000 spread over three years; and other benefits like Innovation Credit Voucher and Capability Development Grant etc.
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PIC Claim Singapore
The PIC Plus Scheme introduced in 2014 is the extension and expansion of Productivity and Innovation Credit (PIC) Scheme of 2010, for encouraging businesses of Singapore with liberal Cash Grants, Tax Deductions, Allowances, Subsidies and such other financial support by the Singapore Government.
Under the PIC Plus Scheme, the targeted beneficiaries are the Small and Medium Enterprises (SMEs) to tide over their cash-crunch for investing capital for Innovations, upgraded technology, equipments and software for increasing their Productivity and Quality of Service.
The changes brought forth by PIC Plus Scheme for SMEs from the PIC Scheme are – enhancing the limit of Qualifying Expenditure spent by qualified SMEs for Tax Deduction purposes of 400%, the limit has been extended from $400,000 per year in 2014 to $600,000 per year from 2015 onwards till 2018; the Qualifying Expenditure cap under each Qualifying Activity can be combined from $1,400,000 in 2014 and 2015 to $1,800,000 from 2016 to 2018.
In respect of Cash Payout, no change has been made by PIC Plus Scheme and the SMEs can claim 60% of the total Qualifying Expenditure amount of $100,000 for all the 6 Qualifying Activities prescribed by the Inland Revenue Authority of Singapore (IRAS), the statutory body streamlining and approving PIC Claim Applications.
PIC Claim Singapore as the premier consulting Agency of Singapore are ever-ready, to help Singapore SMEs in preparing their PIC Claim applications for claiming PIC Plus Scheme Benefits as also PIC Bonus; checking the correctness and submitting to IRAS; follow-up and liaison for maximized PIC Scheme Grants and other benefits.
In order to encourage Singapore-based Industries and Commerce, the Government of Singapore has evolved Productivity and Innovation Credit (PIC) Scheme in 2010. This Scheme is extended to cover further financial years from 2014 to 2018 in 2014 through PIC Plus Scheme.
Under the PIC Scheme, qualifying Industries and Businesses of Singapore carrying on their operations at Singapore, or if they are foreign entities through a branch or unit at Singapore can avail the liberal PIC Scheme Grants, Tax Deductions and Allowances, Subsidies and such other benefits announced under PIC Scheme and PIC Plus Scheme.
The PIC Scheme benefits can be claimed by the businesses through Inland Revenue Authority of Singapore (IRAS) through PIC Claim Applications.
The PIC Scheme benefits are linked with Innovation and Productivity through the use of upgraded Technology, Equipments and Machineries, Processes and Software etc. The Equipments under Information Technology and Automation Equipments are listed specifically by the IRAS.
The “PIC Equipments” in short that the Industries and Businesses can buy or lease are classified under two heads for claiming enhanced Deductions/ Allowances from their Tax Liability – 29 IT and Automation Equipments are eligible for 100% write off in the same financial year, in which they are inducted and 11 Equipments for 100% write off spread over 3 years, as identified in the prescribed list of IRAS.
PIC Claim Singapore professionals are adept in handling in Singapore business and Industries’ PIC Claim Applications, for availing maximized Tax Deductions and Allowances for PIC Equipments. Their expertise gained over experience in explaining the rules, regulations and norms stipulated for PIC Equipments can be used for the best advantage of Singapore Businesses and Industries.
The Singapore Government is progressive in their outlook for encouraging Commercial Businesses and Industries of Singapore. In order to ease up their cash-constraint for investing capital outlay, particularly in the case of Small and Medium Enterprises (SMEs), the Government is granting Cash Assistance, Tax Deductions and similar other privileges, which are Free Money under Productivity and Innovation Credit (PIC) Scheme.
The expenditure incurred in each financial year towards the above objective is named as “Qualifying Expenditure” and the activities that are prescribed for spending Qualifying Expenditure are called Qualifying Activities, for claiming the PIC Scheme Benefits. The following 6 Activities towards achieving highest Productivity and Quality of Service are prescribed by the Government, for claiming 400% Tax Deduction and/or 60% of the Qualifying Expenditure as Cash Payout:
- Acquisition and leasing of PIC Information Technology (IT) and Automation Equipment for increased Productivity.
- Training of employees towards adopting measures for enhanced Productivity.
- Acquisition and in-licensing of Intellectual Property Rights of sophisticated technology upgrades.
- Registration of patents, trademarks, designs and plant varieties to make exclusive use of the Innovative concepts and plant and machinery.
- Research and development activities for continued improvement in the processes, procedures and operations of production and manufacture, to reduce cost and increase Productivity.
- Design projects approved by Design Singapore Council for implementation of novel designs for increasing Productivity and reducing costs.
PIC Claim Singapore professional consultancy services can take Singapore businesses and enterprises by their hand, in spending money prudently in the above Qualifying Activities in each financial year, so that the businesses enjoy maximized PIC Scheme Benefits.
Normally every company, business or enterprise needs to file Income Tax Returns, at the end of very financial year. In that Tax Return, the Tax Liability is arrived at after making appropriate adjustment in the Taxable Income for paying the Tax ultimately to the Government. The calculations thus made are known as Computation of Tax.
In Singapore, qualifying Singapore businesses and enterprises are offered liberal tax benefits, cash benefits that are not taxable and allowances in tax liability etc. to encourage them, for introducing innovation and upgraded sophisticated technology and equipments, to increase Productivity and thereby reduce costs to compete with global businesses.
All the above Cash Grants and Tax Deductions are offered by the Singapore Government, through the Inland Revenue Authority of Singapore (IRAS) under PIC Scheme, PIC Plus Scheme and PIC Bonus.
IRAS has explained in detail the PIC Scheme Benefits item-wise, and the method of Tax Computation and making valid deductions in accordance with the PIC Scheme. Consulting Services like PIC Claim Singapore are thorough with these Tax Computation norms, procedures and practices.
PIC Claim professionals can guide Singapore businesses and enterprises through Tax Advisory Services, and help them in preparing the Tax Returns after perfect Computation of Tax in each individual case to save Tax legally.
The tax savings will run into hundreds of thousands of Singapore dollars, what with 400% Tax Deduction for Qualifying Expenditure up to a ceiling of $600,000 and 60% Cash Payout (which is non-taxable) with a ceiling of $60,000 per financial year. Therefore qualifying Singapore businesses for PIC Scheme Benefits can do well to seek the Tax Advisory Services of PIC Claim Singapore.
Creating a Successful Business
The first step towards having a successful business is creating a product or service for which there exists a demand in the market.
Redefining Process Improvement
The metamorphosis will include a shift from how we consider and define the three aspects that are integral to the success of a business.
Capability and Productivity
Small to medium enterprises have for a long time stood out in Singapore as the future of the Singaporean economy.
Productivity and Innovation Credit (PIC)
This is why the Productivity and Innovation Credit Scheme was conceived. Its main goal was to provide an incentive to SMEs of all calibers.