Government Grants
Productivity & Innovation Credit (PIC) scheme
The Productivity & Innovation Credit (PIC) Scheme allows SMEs to enjoy 400% tax deduction/allowances and/or 40% cash payout for investment in productivity and innovation improvements in six qualifying areas. The tax benefits under PIC are available from Years of Assessment (YAs) 2011 to 2018.
Most of myBusiness SaaS apps are applicable for PIC.*
Example:
Customer subscribes to Web Builder solution from January 2015. Their accounting period is from January to December 2015.
| Web Builder | ||
|---|---|---|
| Monthly subscription for 12 months
(S$38 x 12 months) |
S$456 | |
| Option 1: 400% deduction
(S$456 x 4 times) |
S$1832 | |
| Customer can claim up to S$1,832 against its income when filing its income tax return in YA2016. | ||
| Option 2: Cash Payout
(S$456 x 40%) |
S$182.40 | |
| Customer can receive S$182.40 from IRAS, on a yearly basis. | ||
* Please refer to individual SaaS app for the eligibility of the PIC claim.
Enhanced iSPRINT
The IDA offers pre-qualified infocomm packages supported under iSPRINT (Packaged Solutions) to simplify the grant application process. These ready-to-use solutions enable SMEs to start deploying IT into their operations sooner and at a lower cost, helping them to reap the benefits of ICT adoption.
SaaS app that are listed under iSPRINT:
| SaaS app | Packaged Solution | Funding Level |
|---|---|---|
| Fleet Visibility | Immediate Solution | Up to 70% capped at $20,000 per solution |
Note: A successful application depends on whether the customer meets the respective grants´ conditions.
For more information on PIC, visit http://www.iras.gov.sg/irasHome/PICredit.aspx.
For more information on iSPRINT packaged solutions, visit: http://www.ida.gov.sg/Collaboration-and-Initiatives/Initiatives/Store/iSPRINT-Packaged-Solutions
Articles
Read the latest articles on boosting your business productivity with SaaS apps.
Frequently asked questions
Businesses can enjoy 400% tax deductions/allowances on up to $600,000 of their expenditure per year in each of the six qualifying activities.
Under the cash payout option, SMEs can opt to convert up to S$100,000 of their expenditure in the qualifying areas into a non-taxable payout at a rate of 40% of expenditure.
For the cash payout option, businesses need to:
- active business operations in Singapore;
- employ at least 3 local employees for whom the business contributes CPF on their payroll
Do not forget the PIC Bonus given on top of the tax deduction or cashback received by SMEs. The PIC Bonus gives businesses a dollar-for-dollar matching cash bonus capped at $15,000 for the three years ending 2013 to 2015. Businesses must have incurred at least S$5,000 in PIC-qualifying expenditure during the basis period for the YA in which a PIC Bonus is claimed.
| To claim for the 400% tax deductions | Claim in Income Tax Return |
| To claim for the cash payout | Submit PIC Cash Payout Application form and Hire-Purchase Template to IRAS |
| To claim for the PIC Bonus | No separate application is required. |
Businesses that:
- Are registered or incorporated in Singapore;
- Have at least 30% local shareholding; and
- Have not more than S$100 million group annual sales turnover OR Not more than 200 employees under the group.
Upon purchase of the solution, please complete:
- the Self-declaration form to declare on your company´s eligibility;
- the iSPRINT (Packaged Solutions) Claim Form with supporting documents
Once you are done, you can submit the documents to us. We will submit the documents to IDA on your behalf.