This post was previously published on 26 February 2013. 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.
The Singaporean Government is offering companies additional incentives to improve productivity. It is enhancing the existing Productivity and Innovation Credit (PIC) scheme by introducing a new PIC Cash Bonus for participating firms.
Companies that spend a minimum of $5,000 in PIC activities in a year will receive a dollar-for-dollar cash bonus. The bonus will be capped at $15,000 in total over 3 years of assessment – YA2013 to YA2015. This PIC bonus will be paid over and above existing PIC benefits.
2013 Singapore Budget Productivity and Innovation Credit PIC Enhancement
Invest in SAP Business One. Claim the full $15,000 Bonus and Leverage the Existing PIC Benefits
When your company invests in an SAP Business One solution now, your company will receive the full PIC Bonus Cash of $15,000 and can qualify for the benefits under the existing Productivity and Innovation Credit, a tax incentive offered by the government. ERP software and associated hardware are listed in the PIC Automation Equipment List.
With the existing PIC incentive, your company can convert the software/hardware expenditure into a non-taxable cash payout equivalent to 60% of up to $100,000 of expenditure per Year of Assessment. In this option, your company can receive cash payouts of up to $60,000 of the investment in the SAP Business One ERP solution.
Alternatively, your company can elect the 400% Tax Deduction/Allowance option in which your company can enjoy deduction/allowance at 400% on up to $400,000 of the expenditure in the SAP Business One ERP solution. Please consult IRAS with any queries and for full terms and conditions of the enhanced PIC incentive.
Would you like to learn more? Contact Charlie and the Blue Ocean Systems’ team of ERP specialists to discuss how SAP Business One can help your company become more productive. Contact us.
About Charlie Heng
I love to help businesses, especially SMEs, achieve success through systems and people. I have over 25 years experience in Sales & Business Development, Information Technology, Manufacturing and Consulting roles in Singapore and Asia. Working within multiple industries and varied manufacturing environments, I work closely with clients to help them to enhance their underlying processes, implement best practices and overcome challenges.
I love technology because it’s always changing and at Blue Ocean Systems we are constantly innovating and developing new solutions for our clients to be more successful, competitive and profitable.