PIC Scheme by IRAS

The Productivity and Innovation Credit (PIC) Scheme was introduced in the Singapore Budget 2010 by the Inland Revenue Authority of Singapore (IRAS) to help Small and Medium Enterprises (SMEs) achieve significant tax deductions or pay-outs for investments in research & development, innovation, automation and training.

The PIC Scheme has been further enhanced in Singapore’s 2011 Budget to provide tax benefits for investments by businesses in a broad range of activities along the innovation value chain. The tax benefits under PIC will be effective from 2011 up till 2018.

All businesses can enjoy deduction/allowances at 400% of their expenditure instead of the 100%/150% tax deduction/allowances under the existing tax rules.

SMEs in Singapore can thus be looking at 60% Tax Savings on money spent within the areas of six qualifying activities. Thus for every $10,000 paid out by an SME, it will only cost them $3,200 after tax savings. This is a great opportunity for SMEs to take advantage of the 400% tax deduction/allowance to look at what can be done to improve their business at a low cost.

Contact us to find out more about what can fall under the PIC Scheme tax savings.

Please refer following website link for details on how the PIC Scheme can benefit your company:

– http://www.iras.gov.sg/irasHome/page04.aspx?id=10572

– http://www.iras.gov.sg/irashome/picredit.aspx

For more information, do call us now at +65 9677 6107 / +65 6345 5770
We will assist your company to apply for grant and provide consultation.