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