The Productivity and Innovation Credit (PIC), dispensed under the Inland Revenue Authority of Singapore, allows your business to enjoy 400% tax deductions up to $400,000 or 60% cash pay out up to $100,000, for investments in innovation and productivity improvements. The six activities covered under PIC include:
Research & development.
Registration of intellectual property rights (IPRs) – e.g patents, trademarks, designs and plant varieties.
Acquisition and in-licensing of IPRs – e.g. Buying a patented technology or copyright for use.
Acquisition or leasing of prescribed automation equipment.
Training of employees.
Approved design projects.
From YA2013 to 2015, you may also enjoy a PIC Bonus, a dollar-for-dollar matching cash bonus given on top of the existing tax deductions and cash payout.
The Capability Development Grant (CDG) aims to support SMEs to scale up business capabilities and ensure business sustainability . You can take on projects in areas like product development, human capital development, business processes enhancements for productivity and business model transformation. The grant defrays up to 70 percent* of qualifying project costs such as consultancy, training, certification and equipment costs.
The application requirements for smaller scale projects, for grant support of S$30,000 or less has also been simplified. You can look forward to more streamlined application forms and documentation requirements.