The Productivity and Innovation Credit Scheme
Updated on July 20,2017
Singapore offers a number of incentives and grants to companies. The productivity and innovation credit scheme is an example of such an initiative to encourage businesses to invest in certain areas. Foreign entrepreneurs in Singapore can make use of the available grants and incentives, the help of an accountant in Singapore can be useful in order to determine which scheme applies to a certain business.
The PIC scheme
The Productivity and Innovation Credit Scheme, or the PIC, applies to those businesses in Singapore that undertake investments in innovation and productivity. The scheme grants a 400% tax deduction or allowance for the first 400,000 SGD of expenses incurred within the years of assessment 2011 thru 2018.
The activities that qualify for this scheme are: research and development, intellectual property rights acquisition, the registration of intellectual property rights, industrial design or product design that is approved for Singapore and carried out in the jurisdiction and the purchase or lease of equipment or software for automating processes and for determining employees in Singapore to upgrade their skills and capabilities.
One of our accountants in Singapore can give you complete information about how the tax deduction applies and if your business qualifies for this special scheme.
Corporate taxation in Singapore
Eligible businesses can benefit from even more grants and incentives in Singapore
. Examples of other grants include the research incentive scheme for companies, the training grant for companies and the productivity grant. Examples of tax incentives include the development and expansion incentive, the finance and treasury center incentive, the land intensification allowance or the aircraft leasing scheme.
Apart from these grants and incentives, Singapore has a low taxation regime
and a welcoming business climate. Special deductions can also be available for start-ups and a lower tax rate can apply to a certain amount of the chargeable income.