PIC Government Grant for Web Development

As announced in Budget 2016, the cash payout will be reduced from 60% to 40% for expenditure incurred on or after 1 August 2016. Contact us now to grab hold of this opportunity!

Do you know that your investment in the below services is claimable under the PIC Scheme?

Claim up to $15,000 PIC Bonus plus up to $60,000 PIC Cash Payout

Productivity Software and Customised Application Solution is claimable under the PIC Scheme for these services:

  • Web Design on Content Management System
  • eCommerce System
  • ERP System
  • Customised Web Application Development
  • Mobile Application Development

 

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

  • incurred qualifying expenditure during the basis period for the YA in which a PIC Bonus is claimed;
  • 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.

 

What is Productivity And Innovation Credit (PIC) Scheme?

Productivity And Innovation Credit (PIC) Scheme is to help local businesses to increase their productivity & innovation.

For example, if your investment in Productivity & Innovation activities is S$5,000, you are eligible to claim 60% of it in cash payout (S$3,000).

PIC Scheme on Infographic: (Click to enlarge)

For more PIC information, please visit http://www.iras.gov.sg/irashome/picredit.aspx

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.***Content Management System (CMS) is claimable***
 Below is the information you may want to know about PIC Government Grant:
For PIC basic Qualifying Conditions:
Businesses eligible for the PIC Bonus are sole-proprietorships, partnerships and companies that have:
incurred at least $5,000 in PIC-qualifying expenditure* during the basis period for the YA in which a PIC Bonus is claimed;
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:
Where 400% tax deductions/allowances on qualifying PIC expenditure is claimed - in the last month of the basis period for the YA to which the deductions/allowances relates.
Where PIC cash payout on qualifying PIC expenditure is claimed - in the last month of the quarter or combined consecutive quarters to which the cash payout option relates.
*This refers to the amount net of grant or subsidy by the Government or any statutory board.
Case Study for PIC scheme:
For example, if your investment in Productivity & Innovation activities is S$5,000, you are eligible to claim 60% of it in cash payout (S$3,000). In addition you will get a Dollar-To-Dollar Matching Bonus (S$5,000).
Your company’s total cash payout is S$8,000 (more than 100% of your company’s investment). Your Net Gain is $3,000.
For more PIC information, please visit http://www.iras.gov.sg/irashome/picredit.aspx

Do let us know your feedback on this proposal and we will be more than happy to assist you. Looking forward to your positive reply.

 

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