(1) iSPRINT (Increase SME Productivity With Infocomm Adoption & Transformation)
“ The iSPRINT scheme addresses the different areas of infocomm adoption for the SMEs, making it easy and convenient for these enterprises to seek assistance to help them along their journey for infocomm adoption. It supports the packaged solutions pre-qualified by IDA and customized solutions, as long as the project involves the use of infocomm technology to improve the company’s business operations, resulting in efficiency/productivity, increased revenue or value-add for the business. If you already have plans to implement infocomm solutions to improve your business operations, you can contact IDA to seek advice on the assistance that is suitable for your infocomm project at (firstname.lastname@example.org) for a preliminary consultation: •Request Form •Business Proposal •Latest ACRA business profile of your company •Audited financial statements of your company for the last 2 years
(2) PRODUCTIVITY AND INNOVATION CREDIT
What is PIC? The Productivity and Innovation Credit (“PIC”) was introduced in the Singapore Budget 2010. PIC has been enhanced in Budget 2011 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 Years of Assessment (YA) 2011 to YA 2015. The six activities along the innovation value chain that will qualify for PIC benefits are: 1. Acquisition or leasing of PIC Automation Equipment* (188KB); 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. * PIC Automation Equipment are equipment that are prescribed under the new PIC Automation Equipment List (188KB). Businesses that invest in specialized equipment not in the PIC Automation Equipment List, to automate their processes and to enhance productivity may apply to IRAS to have their equipment approved for PIC on a case-by-case basis.
Tax Benefits under PIC
400% Tax Deduction/Allowances For YA 2011 to YA 2015, all businesses can enjoy deduction/allowances at 400% on up to $400,000 of their expenditure per year on each of the six qualifying activities instead of the 100%/150% tax deduction/allowances under the existing tax rules. To enable businesses to enjoy maximum PIC benefits, the annual expenditure cap of $400,000 for each activity is pooled to give a combined cap for the period YA 2011 and YA 2012 and the period YA 2013 to YA 2015. With the pooling, deduction/allowances are subject to the following expenditure cap: 1. Total expenditure cap for YAs 2011 and 2012 – $800,000 for each of the six qualifying activities; and 2. Total expenditure cap for YAs 2013 to 2015 – $1,200,000 for each of the six qualifying activities. The above was copied from IRAS website, more details can be obtained from: www.iras.gov.sg