Skip to content

Budget 2012: PIC Cashback Increased by 100%

  • March 2, 2011
Toggle

In the recent 2012 Budget Statement, Minister of Finance Mr Tharman Shanmugaratnam highlighted several measures to help businesses in the upcoming times through the revised version of the Productivity and Innovation Credit (PIC) scheme.

What is a PIC scheme?

The PIC scheme provides tax benefits to companies investing in automation equipment and/or activities. These include hardware and software investments, as well as training.

What has been revised?

1. Cash Payout Option Increased by 100%

If your company is a small and growing business, you can convert your hardware/software expenditure into a non-taxable cash payout:

  • Increase in cash payout from 30% to 60% for up to $100,000 of expenditure per YA, from YA2013 to YA2015.
  • Claim cash payouts on a quarterly basis instead of financial year-end. This applies from 1 Jul 2012.
  • Claims for in-house training costs will not require external certification, at a maximum coverage of up to $10,000 a year with effect from YA2012.

2. 400% Tax Deduction/Allowances option

  • Spend S$40,000 in hardware and/or software and enjoy up to S$160,000 tax deduction!
  • From YA 2011 to YA 2015, all businesses can enjoy deduction/allowances at 400% of their expenditure on each of the six qualifying activities.
The Budget benefits will be effective for SMEs seeking to improve their performance and growth. What are you waiting for? Do make the most of such opportune moments today!

Contact us now and allow us to assist you in selecting the right ERP software and hardware for your company.
You May Also Like

These Stories on Leadership

What's the Difference Between Modular and Packaged (all-in-one) ERP Software?

March 12, 2018
Have you ever looked at the functionalities of an enterprise resource planning (ERP) software and thought ‘Wow. That’s...

A Beginner's Quick Primer on Hosted ERP Software vs. Cloud ERP Software

May 15, 2018
If your business is ready to transition to a new ERP system, one of the first decisions you’ll need to make is whether...

The Best of 2018: Our Top 10 ERP Blog Posts

January 10, 2019
With 10 days into the new year, we thought to share our 10 most viewed blog posts of 2018, just in case you've missed...

Subscribe by Email