Are you Leaving Cash on the Table?

This post was previously published on 5 April 2012. For more up to date information on the PIC scheme and other budget initiatives, please refer to our most recent blog post on Singapore Budget updates, with the latest available information from IRAS. For the full details, visit the IRAS PIC site.

In recent posts, we mentioned one of the many benefits of data digitisation within your organisation was the financial allowance provided under the IRAS PIC incentive.

If you missed those posts, read here:

Tangible Reasons for Data Digitisation within your Business

Help! My Organisation is Sinking in Paper Files and Documents!

But data digitisation is not the only reason your organisation might be eligible for the PIC.

First, let’s recap the basics surrounding the PIC:

The Productivity and Innovation Credit (PIC) was enhanced in the 2012 Singapore budget. The incentive is aimed at organisations who invest in a range of activities to improve their business processes and reduce man hours. The six activities include:

  • Acquisition or leasing of PIC Automation Equipment*
  • Training of employees.
  • Acquisition of Intellectual Property Rights (IPRs).
  • Registration of certain IPRs.
  • Research and development (R&D) activities.
  • Investment in approved design projects.

*There is an extensive list of prescribed equipment. Applications for the PIC can still be made for equipment not on the list and are assessed on a case-by-case basis.

The PIC Automation Equipment list includes:

  • Image or graphics processing equipment, including display, facsimile, optical character reader, laser printer, plotter, image setter, digital printing, direct imaging equipment and scanner.
  • Information technology software including office system software and software used in connection with provision of any office automation service, enterprise resource planning, customer relationship management such as reservations, registration, queue management, ordering, billings and collections, inventory management, record management, knowledge management, human resource and payroll management, financial information and business management such as accounting and assets management, and personnel business travel request, information and management

 

Financial Benefits of the PIC*:

  • 400% deduction/allowances up to $400,000 for YA 2011 to YA 2015 of expenses per year on each of the six qualifying activities.
  • Cash payout option – option to convert total expenditure into a non-taxable cash payout (up to $100,000 subject to minimum of $400) in all of the six qualifying activities.

*Data correct at time of publishing. Consult IRAS for up to date information.

 

Is my organisation eligible for the PIC?

Yes! All businesses are eligible for PIC, if they have incurred expenditure in any of the six qualifying activities listed above. Additionally, branches and subsidiaries of the parent or holding company from a foreign incorporated company are also eligible for the PIC.

 

How long does the qualifying period last?

The PIC is effective for five years from Year of Assessment (YA) 2011 to YA 2015.

 

Am I able to claim part of the cost of my SAP Business One solution under the PIC?

Yes! Enterprise Resource Planning (ERP) is one of the inclusions under the PIC automation list.*

*Please consult IRAS with any queries and for full terms and conditions of the PIC.

 

How does SAP Business One enable automation and innovation within organisations?

SAP Business One is a single platform solution which integrates all core business functions including financials, sales, customer relations, inventory and operations. SAP Business One eliminates the need for multiple applications within a small and medium sized enterprise.

To see SAP Business One in action, watch this video.

Download further information about the PIC for automation and innovation – in English and Mandarin.

 

How can I find out more about SAP Business One and the PIC?

Contact Blue Ocean Systems’ team of ERP specialists who can guide you in finding the best SAP Business One solution for your organisation as well as provide further information about the PIC.*

 

*Please consult IRAS for full terms and conditions of the PIC.

 

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