Good news for SME business owners! The Singapore government is putting in a lot of effort to encourage businesses to take the first step in adopting and implementing technology to improve business efficiency and productivity. They are now paying you to have a website! The 2 available schemes are PIC offered by IRAS, and ICV offered by Spring Singapore.
Get help from us at Socialosophy now! Contact us at email@example.com, to arrange an appointment or find out more!
PRODUCTIVITY & INNOVATION CREDIT (PIC) SCHEME
Offered by IRAS, websites are eligible for PIC and PIC Bonus. PIC Bonus will only be offered to end of this year, do not wait anymore, take advantage of the opportunity now!
- Your business can enjoy 400% tax deductions or 60% cash payout for investment in innovation and productivity improvements under the PIC scheme.
- The PIC Bonus gives businesses a dollar-for-dollar matching cash bonus for YAs 2013 to 2015, subject to an overall cap of $15,000 for all 3 YAs combined.
- This is given on top of the existing 400% tax deductions or 60% cash payout under the PIC scheme. The PIC Bonus is taxable.
If the website costs $10,000
> PIC (60% X $10,000) = $6,000
> PIC Bonus (dollar-for-dollar) = $10,000
> Total claim received = $16,000
Who Can Apply?
Businesses eligibe for the PIC Bonus are sole-proprietors, partnerships and companies that have:
- Incurred at least $5,000 in the PIC-qualifying expenditure during the period for the YA in which a PIC Bonus is claimed;
- Active business operations in Singapore; and
- At least 3 local employees (Singapore citizens or Singapore permanent residents with CPF contributions) excluding sole-proprietors, partners under contract for service and shareholders who are directors of the company.
For more information on the PIC scheme, visit here.
INNOVATION & CAPABILITY VOUCHER (ICV)
Offered by Spring Singapore, each businesses can apply up to a maximum of 2 vouchers to implement solutions out the the available 8 vouchers. Each voucher is valued at $5,000. Businesses may apply with Spring to support the solution on a reimbursement basis. The reimbursement will be made directly to the business. All purchases must be made only after the indicated solutions/items have been approved in the application.
A website will fall under the category of “technical solutions”.
Applications will be approved between 2-5 days by Spring. The solution/items have to be purchased or completed within 6 months from approval. Claims and disbursements will be processed within 2-4 weeks upon submission of all required documents.
Who Can Apply?
- Physically present and registered in Singapore
- At least 30% local shareholding
- Group annual sales of not more than $100 million, or group employment size of not more than 200 employees.
For more information about the ICV scheme, visit here.