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.

1. Purpose of the Scheme

Companies can apply for financial assistance for pre-determined activities focused on overseas market set-ups, identification of overseas business partners and overseas market promotion.

Eligibility Criteria

All Singapore-based small and medium enterprises (SMEs) that have:

  • Global HQ anchored in Singapore
  • Annual turnover of less than S$100 million per annum based on the most recent audited report

3.Funding Support

  • 70% of the eligible cost for activities listed below, capped at S$20,000 per company per fiscal year
  • Maximum of two applications per fiscal year, starting on 1 April and ending on 31 March the following year
  • Limited to one activity (e.g. market entry, or participation in a trade fair) per application

In today’s competitive global environment, more companies are expanding overseas. We want to support the internationalisation efforts of willing and able Singapore companies.

The GCP Grant helps companies defray eligible costs of their overseas expansion projects in capability building, market access and manpower development.