PRODUCTIVITY ANDINNOVATION SCHEME
PRODUCTIVITY AND INNOVATION SCHEME The Produc vity and Innova on Credit (PIC) Scheme has been further enhanced for Singapo...
RIKVIN PTE LTD20 Cecil Street, #14-01, Equity Plaza, Singapore 049705Main Line : (+65) 6438 8887Fax : (+65) 6438 2436Email...
Upcoming SlideShare
Loading in …5
×

Singapore productivity innovation scheme

455 views
377 views

Published on

This document discusses about Singapore tax incentive scheme to encourage businesses to invest, increase productivity and innovation through the PIC scheme.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
455
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Singapore productivity innovation scheme

  1. 1. PRODUCTIVITY ANDINNOVATION SCHEME
  2. 2. PRODUCTIVITY AND INNOVATION SCHEME The Produc vity and Innova on Credit (PIC) Scheme has been further enhanced for Singapore Budget 2011. It is a scheme to provide tax incen ves so as to encourage businesses to invest and upgrade along the innova on value chain. The table below outlines the benefits of PIC: Before PIC: Currently, businesses can typically deduct their expenses at cost i.e. 100% as part of the general tax regime. Tax savings = S$100,000 x 17% S$100,000 S$100,000 S$100,000 S$400,000 S$17,000 S$68,000 A er PIC: Businesses can now enjoy 400% deduc on on the cost of the same expenditure. Tax savings = S$400,000 x 17% Expenditure Deduc ons TAX SAVINGS Brief descrip on of qualifying Total deduc ons/allowances under the Qualifying ac vi es expenditures under the PIC PIC (as a % of qualifying expenditure) Acquisi on or Leasing of Prescribed Costs incurred to acquire/lease Automa on Equipment prescribed automa on equipment Training Expenditure Costs incurred on: In-house training (i.e. Singapore Workforce Development Agency (“WDA”) cer fied, Ins tute of Technical Educa on (“ITE”) cer fied; or All external training. 400% allowance or deduc on for qualifying expenditure subject to the Acquisi on of Intellectual Property Costs incurred to acquire IPRs for expenditure cap, 100% allowance or Rights (“IPRs”) use in a trade or business (exclude deduc on for the balance expenditure EDB approved IPRs and IPRs rela ng exceeding the cap to media and digital entertainment contents) Registra on of Intellectual Property Costs incurred to register patents, Rights (“IPRs”) trademarks, designs and plant variety Design Expenditure Costs incurred to create new products and industrial designs where the ac vi es are primarily done in Singapore Research & Development (“R&D”) Costs incurred on staff, costs and 400% tax deduc on for qualifying consumables for qualifying R&D expenditure subject to the expenditure ac vi es carried out in Singapore or cap*. For qualifying expenditure overseas, if the R&D done overseas is exceeding the cap for R&D done in related to the taxpayer’s Singapore trade Singapore, deduc on will be 150%. For or business balance of all other expenses, including expenses for R&D done overseas, deduc on will be 100% Notes: Total expenditure cap for YA 2011 and YA 2012 - $800,000 for each of the six qualifying ac vi es. Total expenditure cap for YA 2013 to YA 2015 - $1,200,000 for each of the six qualifying ac vi es.Singapore Produc vity and Innova on Scheme Copyright © 2011 Rikvin Pte Ltd
  3. 3. RIKVIN PTE LTD20 Cecil Street, #14-01, Equity Plaza, Singapore 049705Main Line : (+65) 6438 8887Fax : (+65) 6438 2436Email : info@rikvin.comWebsite : www.rikvin.comThis material has been prepared by Rikvin for the exclusiveuse of the party to whom Rikvin delivers this material.This material is for informa onal purposes only and hasno regard to the specific investment objec ves, financialsitua on or par cular needs of any specific recipient.Where the source of informa on is obtained from thirdpar es, Rikvin is not responsible for, and does not acceptany liability over the content. Copyright © 2011 Rikvin Pte Ltd

×