PIC Bonus Scheme: The productivity booster for small and medium business

The Singapore Budget 2013 has brought some really good schemes, specially for small and medium businesses to improve productivity, like the new PIC Bonus Scheme.

The PIC Bonus gives businesses that invest at least S$5,000 per year in qualifying activities a dollar-for-dollar matching cash bonus, capped at S$15,000 (over the three years from 2013 to 2015). This is given on top of the existing 400% Tax Deduction and Cash Payout benefits. In addition, the scope of the scheme has been enhanced to include IP In-licensing and a wider variety of automation equipment as qualifying activities. The full list of qualified activities can be found on  IRAS website .

The PIC Scheme was first introduced in Budget 2010 and further enhanced in Budget 2011 and Budget 2012. It is aimed to encourage businesses to invest in productivity and innovation with the objective of attaining long term sustainable productivity-driven growth.

 

How to Claim

The new PIC Bonus Scheme can be claimed in the Income Tax Return along with the Tax Deduction and Cash Payout benefits.

 

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