This post was previously published on 9 March 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.
Blue Ocean Systems understands that there are many competing priorities for small and medium sized enterprises in today’s market. Which organisational challenge or pain should you attempt to resolve first? How much will it all cost? Will you ever see the tangible benefits in terms of financial gains, improved productivity and client satisfaction?
Sometimes it might seem that staying with the status quo is the easier option rather than investing huge amounts of time, effort and money in improving one process here and another process there. Does this sound familiar?
Often, the simplest improvements can have far reaching positive consequences; and with financial incentives from the Inland Revenue Authority of Singapore (IRAS), you could also be eligible for recouping some of the financial investment.
The Productivity and Innovation Credit (PIC) was introduced in the 2010 Singapore budget and has seen further enhancements in 2011 and 2012. 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.
- Registration of patents, trademarks and designs.
- Research and development 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.
Blue Ocean Systems, together with ELO Digital Office, can work with your organisation to implement software solutions which can help you to benefit from such incentive schemes as well as enable you and your employees to work in a more organised, efficient and streamlined environment.
Some of the benefits already seen by ELO Digital Office’s over 900,000 users around the world include:
- 20% decrease in processing costs.
- Automated monitoring of deadlines and payments.
- Integrated invoice processing system within existing SAP software.
- Transparent invoice and payment status available across the organisation.
- Contract documents stored in a process-oriented register with dynamic tagging masks to ensure renewals are handled effectively.
- High levels of customer satisfaction due to a simple on-screen order location process.
- Elimination of administration tasks such as printing, franking and posting invoices with the introduction of electronic invoice processing, including the legally required qualified electronic signature.
There is no better time to evaluate your organisation’s current data management processes.
Speak to one of Blue Ocean Systems’ specialists today.