The Productivity and Innovation Credit (PIC) Scheme was introduced in the Singapore Budget 2010 to help SMEs achieve significant tax deductions or payouts for investments in research & development, innovation, automation and training.
In 2011 this year, 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 til 2015.
For this year, 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 68% Tax Savings on money spent within the areas of the 6 qualifying activities. Thus for every $10,000 paid out by an SME, it will only cost them $3,200 after tax savings. 2011 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 businesses at a low cost.
Contact us to find out more about what can fall under the PIC Scheme tax savings.
