Singapore Productivity And Innovation Credit (pic) Scheme Presented By Tax Accountants Pte Ltd

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The Productivity and Innovation Credit ("PIC") was introduced in the Singapore Budget 2010.

The PIC scheme has been enhanced in Singapore Budget 2011 to provide tax benefits (ie. enhanced deduction/allowances up to 400%) for investments by businesses in 6 PIC-qualifying activities. The tax benefits under PIC will be effective from Years of Assessment (YA) 2011 to YA 2015.

The 6 PIC-qualifying activities are:

1. Acquisition or leasing of prescribed automation equipment;
2. Training of employees;
3. Acquisition of Intellectual Property Rights;
4. Registration of patents, trademarks, designs and plant varieties;
5. Research and development activities; and
6. Investment in approved design projects.


## Tax Benefits under the PIC Scheme ##

See table of tax benefits at http://taxaccountants.com.sg/information/singapore-pic-scheme-tax-benefits-eligibility.htm


## Option for PIC Cash Payout ##

You may also elect for cash payout instead of claiming for enhanced PIC deduction / allowances by completing and submitting the PIC Cash Payout Application Form (92KB) and relevant annexes to IRAS. The application form is available at http://taxaccountants.com.sg/information/singapore-pic-scheme-tax-benefits-eligibility.htm.

The cash payout will be made by IRAS within three months from the date of receipt of the original PIC Cash Payout Application Form and applicable annexes. Submission must be complete (in full) at the time of application.


## Eligibility for PIC Cash Payout Option ##

Businesses eligible to opt for the PIC cash payout are sole-proprietorships, partnerships, companies (including registered business trusts) that have:

1. incurred qualifying expenditure and are entitled to PIC during the basis period for the qualifying YA;
2. active business operations in Singapore; and
3. at least three local employees (Singapore citizens or PRs with CPF contributions excluding sole-proprietors, partners under contract for service and shareholders who are directors of the company). A business is considered to have met this three-local-employees eligibility if it contributes CPF on the payrolls of at least three local employees in the last month of its basis period for the qualifying YA.


## Help and Advice ##

Tax Accountants Pte Ltd provides reliable and affordable services in Singapore which include accounting, bookkeeping, payroll and tax services. Our work processes are designed to be efficient and cost-effective. Our aim is to relieve you of the burdens of statutory compliance and enable you to focus on running and growing your business. Contact us now so we can discuss your requirements; Email us at info@taxaccountants.com.sg.

For more information, visit:

Tax Accountants Pte Ltd
10 Anson Road, #26-04 International Plaza, Singapore 079903
Fax : (65) 6725 8438
Email : info@taxaccountants.com.sg
Website: http://taxaccountants.com.sg

About the Author:
Tax Accountants Pte Ltd are experts in providing advice, training, business planning and support for SMEs and business start-ups. We have more than 10 years of experience helping people get into business. Our services are utilised by small and medium size business, entrepreneurs, self-employed, land and property owners. At Tax Accountants, we have a team of dedicated and professional staff to serve the needs of your company.



Article Originally Published On: http://www.articlesnatch.com


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