Productivity and Innovation Credit _PIC_ Enhanced Allowances by hedongchenchen

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									                                                 Productivity and Innovation Credit
                                         Enhanced Allowances/Deductions Declaration Form
                                               for Sole-Proprietors and Partnerships
 1. This form may take you 10 minutes to complete. Please read the explanatory notes before completing the form.
 2. You need not complete page 2 of this form (sections B3 to B6) if you are only claiming enhanced allowances/deductions for prescribed automation equipment and in-
    house and external training.
 3. This form must be submitted to IRAS together with your annual tax return not later that 15 April. If you e-file your tax return, please fax or send this form to IRAS within
    14 days.
                                                              Part A - Taxpayer Particulars & Declaration
    For Partnerships only
    Name of Partnership                                                                                   :

    Business registration no. of Partnership                                                              :
    Name of Precedent Partner                                                                             :
    For Sole-proprietors only

    Name of Sole-proprietor                                                                               :
    Tax reference no. of Sole-proprietor                                                                  :
    Name of Sole-proprietorship     See Note 2                                                            :
    Business registration no. of Sole-proprietorship             See Note 2                               :

A1. I declare that the amount claimed as enhanced allowances/deductions is net of government grants/subsidies.

A2. I confirm that the enhanced allowances/deductions claimed in this form have been included in the "Allowable Business Expenses" under the 4-line
    statement of the Income Tax Return.

A3. I declare that I have met the qualifying conditions for all the claims and the information given in this form are true, correct and complete.

    Signature:

    Contact no:

    Date:


                                                                          Part B - Details of claim

  1 Year of Assessment of claim                                                                           :
  2 Accounting Period          See Note 2                                                                 :                               to
                                                                                                                (dd/mm/yyyy)                            (dd/mm/yyyy)

B1. Prescribed Automation Equipment                       See Note 3


               Date of Purchase/            Please tick (√) whether Equipment is
                                                   Purchased or Leased                                                                                        Cost of Equipment
    No.          Lease Period                                                                             Description of Equipment
                                                                                                                                                                     (S$)
                  (dd/mm/yy)
                                                Purchase                Lease
    1
    2
    3
    4
    5
    6
    7
    8
    9
                                                                                                                                               TOTAL
                                                                                           Total Qualifying Deductions [400% x Qualifying Cost*]


B2. In-house and External Training                  See Note 4

    No.                                                           Title/Description of Training                                                             Cost of Training (S$)
    1
    2
    3
    4
                                                                                                                                               TOTAL
                                                                                           Total Qualifying Deductions [400% x Qualifying Cost*]

                                                                                            Page 1
B3. Intellectual property rights (IPR) acquisition (Not applicable to Sole-proprietorship)                               See Note 5


          Date of Acquisition of IPR                                                                                                                           Cost of IPR
    No.                                                                                Description of IPR
                 (dd/mm/yy)                                                                                                                                  Acquisition (S$)

    1
    2
    3
                                                                                                                                            TOTAL
                                                                                         Total Qualifying Deductions [400% x Qualifying Cost*]


B4. Patents, trademarks, designs and plant varieties registration                     See Note 6

                                                                     Description of patents, trademarks, designs and                                           Cost of IPR
    No.     Date of filing of IPR
                                                                                      plant varieties                                                        Registration(S$)

    1
    2
    3
                                                                                                                                            TOTAL
                                                                                         Total Qualifying Deductions [400% x Qualifying Cost*]


B5. Research and Development (R&D) Activities                    See Note 7


                                                                                                                                   In-House R&D Cost   Outsourced R&D Cost
    No.                                             Description of R&D project
                                                                                                                                          (S$)                 (S$)

    1
    2
    3
                                                                                                                      TOTAL
                                                                Total Qualifying Deductions [400% x Qualifying Cost*]


B6. Approved Design Projects               See Note 8


                                                                                                                                                               Outsourced
                                                                                                                                       In-house
    No.                                            Description of Design project                                                                                 Design
                                                                                                                                    Design Cost (S$)
                                                                                                                                                                Cost (S$)

    1
    2
    3
                                                                                                                      TOTAL (c)                        (d)
                                                                                                                   (c) + (d)
                                                                Total Qualifying Deductions [400% x Qualifying Cost*]




    *Qualifying cost is the total expenditure for each qualifying activity subject to a cap of $800,000 for YA 2011 and YA 2012.




                                                                                           Page 2
                                                  Explanatory Notes on completing the
                       Productivity and Innovation Credit (PIC) Enhanced Allowances/Deductions Declaration Form
                                                     for Sole-Proprietors and Partnerships
Important
Notes
               Enhanced Allowances/Deductions
            1. From YA 2011 to YA 2015, all businesses can enjoy deductions/allowances at 400% of their expenditure on each of the six
               qualifying activities instead of the 100%/150% tax deductions/allowances under the existing tax rules.

               The deduction/allowances are subject to the following expenditure cap:
               -Total expenditure cap for YAs 2011 and 2012: $800,000 for each of the six qualifying activities; and
               -Total expenditure cap for YAs 2013 to 2015: $1,200,000 for each of the six qualifying activities.

            2. For sole-proprietors making claim for more than 1 sole-proprietorship business
            A. Please complete separate PIC Enhanced Allowances/Deductions Declaration Form for each business and submit all completed
               forms together.
            B. For Part A, the "Name of Sole-proprietorship", "Business registration no of Sole-proprietorship" and for Part B, the "Accounting
               Period" fields refer to the business which you are making PIC claim.

            3. Prescribed Automation Equipment
            A. Please refer to Income Tax (Automation Equipment) Rules 2004 and Income Tax (Automation Equipment)(Amendment) Rules
               2010 for the lists of the prescribed automation equipment from IRAS website under 'Quick Links' > 'Tax Acts' > 'Income Tax'

            B. Business can deduct 400% of the qualifying expenditure subject to the expenditure cap (Note 1) and 100% allowance/deduction for
               the balance expenditure exceeding the cap.

            4. In-house and external training
            A. Expenditure incurred on all external training and the following in-house training of employees will qualify:
               (i) Workforce Skills Qualification (WSQ) training courses accredited by the Singapore Workforce Development Agency and
               conducted by a WSQ in-house-training provider; Education (ITE) under the ITE Approved Training Centre scheme and
               (ii) Courses approved by the Institute of Technical
               (iii) On-the-job training by an on-the-job-training centre certified by ITE.
            B. Qualifying cost for external training comprises course fees paid.
               Qualifying cost for in-house training comprises in-house trainers' remuneration for delivery of course (excluding directors' fees),
               rental of premises, food & refreshments provided and training materials.
            C. Business can deduct 400% of the qualifying expenditure subject to the expenditure cap (Note 1) and 100% deduction for the
               balance expenditure exceeding the cap.

            5. Intellectual property rights acquisition
            A. The allowance for acquisition of Intellectual Property Rights (IPR) is applicable only to a partnership where the legal and economic
               ownership of the IPR(s) belong to the business entity in Singapore.
            B. Qualifying IPR(s) refers to patent, copyright, trademark, registered designs, geographical indication, layout design of integrated
               circuit, trade secret and information that has commercial value and plant variety.
            C. Business can deduct 400% of the qualifying expenditure subject to the expenditure cap (Note 1) and 100% allowance for the
               balance expenditure exceeding the cap.

            6. Patents, trademarks,designs and plant varieties registation
            A. The deduction for patents, trademarks, designs and plant varieties registration costs is allowable on the condition that the legal and
               economic ownership of the Intellectual Property Rights (IPR) belong to the business entity in Singapore.
            B. Business can deduct 400% of the qualifying expenditure subject to the expenditure cap (Note 1) and 100% deduction for the
               balance expenditure exceeding the cap.

            7. Research and development (R&D) activities
            A. Cost incurred on staff cost and consumables for qualifying R&D activities carried out in Singapore or overseas if the R&D done
               overseas is related to the taxpayer's Singapore trade or business.
            B. Please refer to IRAS e-Tax Guide "Research And Development Tax Measures" for more details.
            C. Business can deduct 400% of the qualifying expenditure for R&D subject to the expenditure cap (Note 1). Qualifying expenditure
               refers to the staff cost, consumables and any such expenditure prescribed by the Minster. For out-sourced R&D expenditure, 60%
               of the total payments made to the R&D organization will be deemed as qualifying staff cost and consumables allowed for enhanced
               deduction. Where more than 60% of such payments are made up of staff cost and consumables, enhanced deduction based on
               the actual percentage of staff cost and consumables incurred is allowed.

            8. Approved design projects
            A. The design projects must be approved by DesignSingapore Council.
            B. Qualifying cost for in-house project comprises 100% of the cost of qualified designer.
               For projects outsourced to a design service provider, it is 60% of the invoiced amount.
            C. Business can deduct 400% of the qualifying expenditure subject to the expenditure cap (Note 1) and 100% deduction for the
               balance expenditure exceeding the cap.



                                          If you require further clarification, please call our helpline at
                        (+65) 6351 3534 (for Sole-proprietorships/partnerships) or send an email to picredit@iras.gov.sg.

								
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