Setting up a Singapore Company – $60,000 Cash Rebate for your investment
Productivity & Innovation Credit (PIC)
Singapore has been facing an urgency to push its efficiencies and productivity in a wide range of industries. As a result, several different government agencies in Singapore have been continually providing several grant schemes to aid SMEs to use technology and other resources to achieve that objective.
Overview of PIC
In the 2010 budget, Singapore government introduced Productivity and Innovation Credit Scheme (PIC) scheme that allows enterprises to enjoy up to 400% tax deduction or allowances or get 60% cash payouts when they invest in innovation, research and development, automation, and training.
The tax benefits under PIC are available from Years of Assessment, or YAs, 2011 to 2015, when you invest in any of its 6 qualifying activities. These qualifying PIC activities include the training of employees; acquiring and leasing of IT and automation equipment; the acquiring and in-licensing of intellectual property rights; the registration of trademarks, designs, and patents; activities involving research and development; design projects that are approved by the Design Singapore Council. Among its 6 activities, one is ‘Investments in Design.’ The Investments in Design, or PIC for Design, encourages companies in Singapore to continuously strive to design innovative solutions. Currently, it is managed by the DesignSingapore Council.
All businesses also enjoy a PIC Bonus from YAs 2013 to 2015 – a dollar-for-dollar matching cash bonus offered in addition to the 400% tax benefits and 60% cash payout.
PIC for SMEs
All SMEs are eligible for the PIC grant, which is available for up to 5 years. However, all the qualifying expenditure must be incurred between the basis periods for Years of Assessment (YA) 2011 to 2015. The PIC Scheme also focuses on covering expenses incurred during external training as well as in-house training for all types of businesses, including SMEs.
To improve the accessibility of various government schemes to SMEs, SPRING is doing its best to set up more SME in the country and also help them read more SME clients. For external training, all business can claim the exemption for course fees/workshops with any external service providers, which includes enrollment and registration fees, tuition fees, examination fees and aptitude tests; meals and refreshments costs during the courses; rental of training premises; traveling, transport, and accommodation expenses incurred while attending the training.