Singapore announced in Budget 2016 some changes to the nation’s popular Productivity and Innovation Credit (PIC) scheme.
What’s changed and what should you, as a business owner, do NOW in order to take full advantage of the full benefits as it is currently?
The PIC scheme was first introduced in 2011 to boost productivity and innovation among businesses in Singapore.
Under the PIC scheme, qualifying businesses are rewarded with cash payouts and tax deductions for their investments in these six qualifying activities that help boost productivity >>
|This cash payout rate will be reduced from 60% to 40% for qualifying expenditure incurred on or after 1 August 2016. The PIC scheme will lapse after YA 2018.|
All businesses, including sole proprietorships, partnerships, companies, registered branches and subsidiaries of a foreign parent or holding company, are eligible for PIC.
You may enjoy PIC benefits on the cost incurred to acquire or lease equipment that are in this PIC IT and Automation Equipment List. The IRAS approves expenditure on a case-by-case basis if they help to automate or mechanise business processes and enhance productivity but are not in the list.
In addition, your business must meet the following qualifying conditions for the respective benefit:
To enjoy the 60% cash payout while it lasts, you must make your purchases before 31 July this year and submit the PIC Cash Payout Application Form directly to IRAS online.
Of course! Dragon Law helps your business become more productive by automating the process of legal document creation. In other words, your Dragon Law subscription is claimable as a qualifying activity under PIC’s Acquisition and Leasing of PIC IT and Automation Equipment.