Well, if by now you have not heard of this scheme, as a business owner, you would have missed out on quite a fair bit of goodies given out by our tax authority in the recent years. Not to worry, there is a couple more years till this scheme is over (unless the next Singapore Budget 2016 extends this scheme again).
So, what is so interesting about this PIC scheme that gets everyone talking about? Read on to find out more.
The PIC scheme was first introduced in Singapore Budget 2010 and many enhancements to improve this scheme has been made since then.
The PIC scheme gives taxpayer 2 options whenever they have incurred expenses on the following 6 activities:
- Acquisition or leasing of PIC IT and Automation Equipment;
- Training of employees;
- Acquisition and Licensing of Intellectual Property Rights;
- Registration of Patents, Trademarks, Design and Plant Varieties;
- Research and Development; and
- Investment in design projects
The 2 options that are available for taxpayers are:
- Cash Payout (cash return)
- Enhanced Deduction (tax saving against your tax payable)
For the next few subsequent posts, I will focus mainly on the 2 most popular activities which are:
1) Acquisition or leasing of PIC IT and Automation Equipment; and
2) Training of employees.