Singapore Productivity and Innovation Credit Scheme

SINGAPORE PRODUCTIVITY & INNOVATION CREDIT SCHEME Option 1 Option 2 Cash Payout of up to $60k Tax Deduction of up to 400% At least 3 CPF Employees Having Profitable Business How it Works How it Works AFTER PIC AFTER PIC BEFORE PIC BEFORE PIC S$1 3 S$0.60 S$1 S$1 S$4 Tax Deductible Cash Payout (for a maximum of $100,000 per YA) Tax Deductible Expenditure Expenditure Expenditure Expenditure + PIC Bonus (YA 2013 - YA 2015) Dollar-for-dollar matching bonus for a minimum qualifying investment of $5,000, subject to an overall cap of S$15,00o for all 3 YAs * *must have at least 3 CPF employees to be eligible for PIC Bonus You Spend You Get You Earn You Spend You Pay Estimated Taxable Income Total Qualifying Total PIC Claim (400%) Total Qualifying Expenditure Total Cash Payout Estimated Tax : Effective Tax Payable Effective Tax (60% of Expenditure) Payable Rate Expenditure 10,000 6,000 1.000.000 106,000 10.60% 250,000 1,000,000 20,000 12,000 2,000,000 276,000 13.80% 500,000 2,000,000 %3D 30,000 18,000 3,000.000 446,000 14.87% 750,000 3,000,000 %3D 40,000 24,000 4,000,000 616.000 15.40% 1,000,000 4,000,000 %3D %3D %3D 50,000 30,000 5,000,000 786,000 15.72% 1,250,000 5,000,000 %3D %3D 60,000 36,000 6.000.000 956,000 15.93% 1.500,000 6,000,000 %3D %3D 70,000 42.000 7,000,000 1,126,000 16.09% 1,750,000 7,000,000 %3D %3D 80,000 48,000 9,600,000 1,568,000 16.33% 2,400,000 9,600,000 90,000 54,000 13,000,000 2,146,000 16.51% 3,250,000 13,000.000 100,000 60,000 25,000,000 4.186.000 16.74% 6,250,000 25,000,000 Qualifying Activities Maximum claim for each activity is $1.4M combinely for YA 2013- YA 2015. | Maximum claim for each activity is $1.8M combinely for YA 2016- YA 2018. Acquisition and Leasing of PIC IT & Automation Еquipment Training Expenditure Acquisition and In-licensing of Intellectual Property Registration of Patents, Trademarks, Designs and Plant Varieties Research & Development (R&D) Approved Design Expenditures EM Desktop, laptop and software •... Approved design projects relating to product & industrial design activities Web In-house training accredited by Singapore Workforce Development Agency (WDA) or approved/ certified by Institute of Technical Education (ITE) Costs incurred to buy Intellectual Property Rights / IPR (e.g. a patented technology) for use in trade or business Local and Worldwide Trademark Registration including professional fees development Qualifying R&D Activities costs Fax machines, laser printers, E smart phones and other IT equipment N You Tube M Fees to engage in-house eligible designers Salaries for R&D personnel ĮGoogle Coca-Cola Industry- specifie Automation Equipment External course fees for employees (excluding business owners) Costs incurred on IPR in-licensing (e.g. price paid for copyright) Fees outsourced to eligible design service providers to carry out approved design activities D YAHOO! Fees paid to R&D institute for creating a novel product RIKVIN RIKVIN PTE LTD | 20 Cecil Street, #14-01 Equity Plaza, Singapore 049705 | Reg No 200708442E Tel: +65 6320 1888 | Fax: +65 6438 2436 | www.rikvin.com | [email protected] BONUS YOU SPEND YOU SPEND YOU CLAIM