So you’ve decided to start your very own business here in Singapore. Whilst being consistently ranked as one of the best countries in the world to conduct business (right up their with New Zealand, Woohoo!), you will realise that starting a business is never a simple task, what with all the miscellaneous costs of setting up shop (CPF, SDL, IRAS - Singapore loves it's acronyms).
Here at TradeGecko, being a small but expanding business like yourself, we understand some of the growing pains everyone will experience while trying to make that dream of yours a reality so we've decided to write a series of articles about starting and growing a business in Singapore. Fortunately enough for us, being in Singapore does have numerous benefits to SMEs, like you and me, today we are going to discuss one of the many grants available. How does that old saying go? “You have to spend money to make money”? Well in the case of the PIC, the saying is more than apt.
The PIC grant, or Productivity Innovation Credit, is a scheme by the Inland Revenue Authority of Singapore (IRAS), aimed to relieve SMEs (Small and Medium Size Enterprise) from some of the costs involved in setting up a new businesses. The PIC scheme is running through Y.A. 2013 to 2015 and that’s essentially covering 2012 to 2014 for all us non-accountants.
It comes in two forms, of which you pick either;
a 400% tax deduction or
a 60% cash rebate.
The full list of activities and equipment eligible for the PIC grant can be found on the IRAS website. View the PDF file here
We would recommend you should stick to the 60% cash rebate unless you plan to spend more than $100,000 on PIC activities.
On top of all that, the IRAS is generous enough to grant a dollar-for-dollar-spent bonus on all expenditure up to $15,000, which shouldn’t be too hard to reach.
Being eligible for the PIC is simple! All you have to do is meet the following criterion;
Be based in Singapore (which I’m sure all of you reading up to this point are)
Have contributions to CPF, on the payrolls of 3 employees
And be spending at least $400 on PIC activities.
Now that wasn’t difficult, was it?
For the cash bonus you’d have to meet an additional criteria of spending a minimum of $5000 a year, which I don’t think would present much of a problem to anyone!
Killing two birds with one stone has never been easier! Heck, we’ll even hand you the stone! Under the PIC, you won’t just get a percentage rebate on your TradeGecko subscription, you might even get paid to use our software!
Now I’m no magician, but I am a MATHE-magician. Being eligible for the cash bonus and the cash payout would entitle you to a full 160% percent rebate on your subscription fees! That’s 60% of what you’ve spent in cold, hard cash! And the best part is, IRAS lets you do whatever you want with the money!
Remember that stone I mentioned, well here it is! We’ve provided calculations of what you’ll save under the PIC!
To apply for the PIC, all you have to do is fill in these forms. They are a tad long winded being government forms and all, but you have to work for your money I guess. You can follow this link for either of the forms (http://www.iras.gov.sg/irasHome/page04.aspx?id=10572). Or if you’re too busy running your business, you can easily get in touch with an accountant to do the paperwork for you. We are also more than happy to help, so if you need some friendly advice please don't hesitate to contact us.
As for the cash bonus, you don’t have to do a single thing! Just submit the forms and the IRAS will do the rest. Talk about your tax dollars at work!
And of course this post wouldn’t be complete if I didn’t provide you with a link to start a free trial of TradeGecko (https://go.tradegecko.com/register). It even comes with a 3 week free trial!
So, what are you waiting for? Sign up for TradeGecko today and claim it all back!