Singapore Firms to Reap Full Tax Savings via Productivity and Innovation Credit Scheme: Rikvin.com by rikvinsingapore

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									Singapore Firms to Reap Full Tax
Savings via Productivity and
Innovation Credit Scheme:
Rikvin.com

Rikvin has developed a comprehensive tax claims
chart to help Singapore entrepreneurs and firms enjoy
100% tax savings via the PIC scheme.
In light of prevailing concerns over rising inflation and business costs,
Singapore company registration specialists, Rikvin, has developed a
Productivity and Innovation Credit (PIC) Claims Chart to help Singapore
entrepreneurs and firms enjoy 100% tax savings. Rikvin’s PIC Claims Chart
allows Singapore business leaders to quickly grasp how they can achieve
those savings and in turn, allocate the relevant resources to that end.

The PIC scheme was first announced in 2010 with the aim of spurring skills
upgrading and innovation-related activities amongst Singapore enterprises. A
year later, the scheme was enhanced and extended to the Year of
Assessment (YA) 2015. In gist, the updated scheme allows every Singapore
company to enjoy a 400% tax deduction on the first S$400,000 invested in six
qualifying productivity-enhancing and innovation activities.

Therefore, Singapore firms that plan their productivity and innovation
strategies ahead of time stand to reap full tax savings on annual taxable
income of up to S$9.6 million. This is possible as they can estimate their
taxable income and make provisions for investments in qualifying activities at
the time of annual budgeting.

Commenting on the scheme, Mr. Satish Bakhda, Rikvin’s Head of Operations
said, “The Singapore government understands that business owners are
increasingly concerned about rising inflation and business costs. So, instead
of slashing the headline tax rate, the government has introduced the PIC
scheme to not only mitigate rising costs and lift the tax burden on businesses
in the short term, but also to allow them to benefit for the long haul.”

“Singapore’s PIC scheme is a perfect aid to businesses as they benefit from
enterprise-level growth at little cost to them. Macroscopically, this scheme has
immense potential to stimulate Singapore’s domestic economy. In gist, the
PIC scheme is valuable as it allows Singapore enterprises to have the cake
and eat it too. Therefore, it would be prudent for entrepreneurs to take
advantage of this scheme as well. Rikvin’s PIC Claims Chart clearly illustrates
the tangible Singapore corporate tax benefits that firms stand to enjoy,” added
Mr. Bakhda.
FURTHER INFORMATION ON THE PIC SCHEME

Firms that roll out any of the following six activities will qualify for PIC benefits:

      Acquisition or leasing of prescribed automation equipment
      Training of employees
      Acquisition of Intellectual Property Rights
      Registration of patents, trademarks, designs and plant varieties
      Research and development activities and
      Investment in approved design projects.

The enhanced PIC scheme provides for:

      A tax deduction of 400% on the first S$400,000 spent for each of the
       six qualifying activities.
      The qualifying expenditure cap of S$400,000 per year, to be combined
       during the years 2013 - 2015 to a total of S$1.2m in claimable
       expenses, allowing businesses to mitigate potential cash flow issues
       when investing in large research and development projects.
      The scheme is available for research and development activities
       conducted outside Singapore.
      A cash conversion, where a cash payout of 30% can be received by
       the business for the first S$100,000 of qualifying expenditure in lieu of
       a tax deduction. This provision will specifically benefit small businesses
       which pay little or no tax in Singapore but wish to invest to increase
       productivity.
The tax payment to be deferred from tax years 2011 - 2014 when companies
incur qualifying PIC expenditure. The tax amount that can be deferred will be
the lower of the tax payable assessed for the current tax year and the
qualifying PIC expenditure incurred in the current financial year, subject to a
cap of $100,000.

ABOUT RIKVIN

Rikvin is a Singapore-based consultancy that offers business solutions for
both local and foreign professionals, investors and entrepreneurs. Rikvin’s
areas of expertise include Singapore company registration or assistance to
form a Singapore company, incorporation, offshore company setup,
accounting, taxation and other related corporate services. Rikvin also
provides Singapore work visa and immigration services for foreign
professionals wishing to relocate to Singapore.

Rikvin Pte Ltd 
 20 Cecil Street, #14-01, Equity Plaza, Singapore 049705

 (65) 6438 8887 
 http://www.rikvin.com/

								
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