GET SUBSIDIES FOR YOUR ERP SYSTEM!

iSprint

Up to 70% of qualifying costs!

60% Cash

PIC

400% Tax Rebate

OR

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iSprint + PIC Computation Table

1st Scenario 2nd Scenario 3rd Scenario
Cost of ERP System (Cash outflow) $5,000 $10,000 $15,000
iSprint (upto 70% inflow) $3,500 $7,000 $10,500
PIC (60% Cash inflow NETT of iSprint) $900 $1,800 $2,700
Total Cashback $4,400 $8,800 $13,200

Frequently Asked Questions

PIC & PIC+ (Budget 2014)

The Productivity and Innovation Credit (“PIC”) was introduced in the Singapore Budget 2010. PIC has been enhanced in Budget 2011 to provide tax benefits for investments by businesses in a broad range of activities along the innovation value chain. The tax benefits under PIC will be effective from Years of Assessment (YA) 2011 to YA 2015.

The PIC+ scheme was introduced in Budget 2014 for SMEs (eligibility criteria updated! Please check "Is my business eligible for PIC" below.) which increases the amount of tax claim and extends the scheme from YA2015 to YA2018

Eligible businesses can enjoy 400% tax deductions/ allowances (up to $400,000 per activity) and/or 60% cash payout (up to $100,000 for all activities). The tax benefits under PIC are available from Years of Assessment (YAs) 2011 to 2015.

Under PIC+ (Budget 2014), eligible businesses can claim up to $600,000 per activity. Cash payout remains the same. PIC+ is available from Years of Assessment (YAs) 2016 to 2018.

For tax deduction, any local registered business with operations in Singapore is eligible.

For cash payout, businesses eligible to apply for the cash payout are sole-proprietorships, partnerships, companies (including registered business trusts) that have:

  • incurred qualifying expenditure and are entitled to PIC during the basis period for the qualifying YA;
  • active business operations in Singapore; and
  • at least 3 local employees (Singapore citizens or Singapore permanent residents with CPF contributions) excluding sole-proprietors, partners under contract for service and shareholders who are directors of the company.

  • A business is considered to have met the 3-local-employees condition if it contributes CPF on the payroll of at least 3 local employees in the relevant month.

Businesses eligible for the PIC+ scheme are sole-proprietorships, partnerships and companies carrying on a trade or business and whose

  • revenue is not more than $100 million or
  • employment size is not more than 200 employees.

  • This criterion will be applied at the group level if the business is part of a group.

Yes ERP systems are qualified under the Acquisition or leasing of PIC Automation Equipment list. No approval is required

Years of Assessment (YAs) 2015 for accounting year 2014. Extended to YA 2018 for PIC+.

If tax deduction is selected, it is claim in Income Tax Return. Sole-proprietors and partnerships also have to submit the PIC Enhanced Allowances/Deduction Declaration Form for Sole-Proprietors and Partnerships together with their income tax returns.

If cash payout is selected, submit PIC Cash Payout Form to IRAS at the end of your financial quarter.

For tax deductions it is computed by IRAS after filing income tax returns.

For cash payout, the payout will generally be made by IRAS within three months of receipt of the application form and relevant annexes if the information is complete.

Refer to the IRAS website

PIC Bonus

Note: PIC Bonus has ended at end of 2014 or YA 2015.

As announced in Budget 2013, for Years of Assessment (YAs) 2013 to 2015, businesses that invest in qualifying activities under the Productivity and Innovation Credit (PIC) scheme will receive a PIC Bonus.

The PIC Bonus helps businesses defray rising operating costs such as wages and rentals and encourages businesses to undertake improvements in productivity and innovation. The PIC bonus is determined by the amount of expenditure businesses incur on PIC-qualifying activities.

The PIC Bonus gives businesses a dollar-for-dollar matching cash bonus for YAs 2013 to 2015, subject to an overall cap of $15,000 for all 3 YAs combined.

This is given on top of the existing 400% tax deductions/allowances and/or 60% cash payout ("PIC cash payout") under the PIC scheme. To enjoy the PIC Bonus, businesses must have made a claim for the 400% tax deductions/allowances and/or the PIC cash payout.

The PIC Bonus is taxable.

Eligibility conditions are the same as PIC Cash payout as follows:

Businesses eligible to apply for the cash payout are sole-proprietorships, partnerships, companies (including registered business trusts) that have:

  • incurred qualifying expenditure and are entitled to PIC during the basis period for the qualifying YA;
  • active business operations in Singapore; and
  • at least 3 local employees (Singapore citizens or Singapore permanent residents with CPF contributions) excluding sole-proprietors, partners under contract for service and shareholders who are directors of the company.

  • A business is considered to have met the 3-local-employees condition if it contributes CPF on the payroll of at least 3 local employees in the relevant month.

Qualifying conditions are the same as PIC, ERP systems are qualified under the Acquisition or leasing of PIC Automation Equipment list. No approval is required

Years of Assessment (YAs) 2015 for accounting year 2014. Claim it NOW!

Businesses do not need to apply for the PIC Bonus.

Where 400% tax deductions/allowances is claimed in the income tax return.

IRAS will compute the amount of PIC Bonus for each YA upon filing of the income tax return*.

IRAS has started disbursing the PIC Bonus since the first week of Jul 2013. Most businesses can expect to receive the PIC Bonus within three months from filing their tax return and as long as all requisite information has been submitted with the tax return.

* Sole-proprietors and partnerships also have to submit the PIC Enhanced Allowances/Deduction Declaration Form for Sole-Proprietors and Partnerships together with their income tax return.

Where PIC cash payout is claimed via the PIC Cash Payout Application Form.

IRAS will compute the amount of PIC Bonus upon approval of the PIC cash payout claim* submitted via the PIC Cash Payout Application Form. IRAS will generally approve the cash payout claim within 3 months from the date of receipt of the application, provided all requisite information is submitted at the time of application. The PIC Bonus will be paid within three weeks after the cash payout claim has been approved.

Businesses whose PIC cash payout applications for YA 2013 and/or YA 2014 have already been approved by IRAS will also receive the PIC Bonus. IRAS has started disbursing the PIC Bonus for these cases since the first week of Jul 2013.

* Businesses can apply for PIC cash payout up to four times a year (i.e. after the end of each quarter or combined consecutive quarters).

Refer to the IRAS website

For PIC+ IRAS PIC+ scheme



iSprint

iSprint is an initiative by Infocomm Development Authority, SPRING Singapore and Inland Revenue Authority of Singapore to encourage SMEs to use technology to improve or innovate their business operations.

The infocomm project should lead to:

  • increase in efficiency/ productivity
  • increase in revenue
  • increase in value-added

70% of qualifying costs:

  • SaaS Software/ subscription cost (up to 12 months)
  • Consultancy services
  • Training cost

All small and medium enterprises (SMEs) that are registered or incorporated in Singapore. Your business qualifies as a SME if:

  • 30% - 100% of your shareholding is local AND
  • your annual group sales turnover is less than S$100 million* OR
  • you have 0 - 200 employees*


* Computed on a group basis i.e. checking all levels up for corporate shareholders holding 51% - 100% of the total shareholding in your company and all levels down where your company owns 51% - 100% of shareholding in subsidiary company(s).

Yes this system qualifies under Customised solutions. The grant does not support upgrades and enhancements for existing infocomm systems. It can support new computerisation of the business functions not previously automated.

Businesses that have previously applied for Local Enterprise Technical Assistance Scheme (LETAS) can still apply for iSPRINT, as long as it is for automation of a different business function.

Until funds run out. Get it NOW!

Submit claims with supporting documents after implementation completion

6 - 8 weeks after implementation completion

Refer to IDA website.