Due to the global economic downturn and its possible impact on Singapore indigenous companies, particularly on Small Medium Enterprises (SME), the Inland revenue authority of Singapore(IRAS) and info-communications Development Authority of Singapore(IDA) have announced the following enhancements and grants for all businesses benefit, especially SMEs, to offset the high costs which may persist in the business slowdown.
Productivity and Innovation Credit was introduced in Budget 2010 by IRAS singapore and enhanced in Budget 2011 and 2012 to encourage businesses to invest in productivity and innovation for all businesses benefit, especially SMEs.
The productivity improvement activities covered under PIC are:
- Acquisition or leasing of PIC Automation Equipment* (223KB);
- Training of employees;
- Acquisition of Intellectual Property Rights;
- Registration of patents, trademarks, designs and plant varieties;
- Research and development activities; and
- Design projects approved by DesignSingapore Council.
Businesses have to obtain prior approval from the DesignSingapore Council for their design projects. For the other five activities, no approval is required to claim the tax benefits under PIC.
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