Singapore has been a blooming industrial hub since the advent of the scheme known as Production and Innovative Credit (PIC Grant) which has been launched by the Singapore Government in 2011 as an initiative to support the growth of industries while reducing the overall tax and cost payout burden. Here is a brief introduction about the PIC Grant and their work for assistance of the retail industries in Singapore.
What is PIC Grant?
Singapore Government launched a business incentive scheme known as Production and Innovative Credit (PIC Grant) to ensure benefit to the small business in terms of faster development and increasing productivity while at the same time, diminishing the tax pay and cost payout as much as 400K a year.
There are certain areas like Research and Development, External Training, Intellectual Property, Trademark Registration, which solidifies the ground for the development of the retail industries.
How to get PIC Grant?
For any retail industry, the PIC Grant Consultant of Singapore will check for the following criteria, which allows the set up of retail industries:
The 6 Benefits offered by PIC Grant:
Retail Industries in Singapore has received an immense boon from the PIC Grant Singapore, which helped them to flourish properly. Here are the 6 benefits guaranteed to them by PIC Grant which are stated as follows:
From the above discussion, we can wrap up the benefits provided by the PIC Grant Singapore for the betterment of the retail industries. Recently launched scheme PIC Grant 2014 ensures that the industries will receive the expenditure cost as much as 400K per year, so they can maximize their profit.
Productivity and Innovation Credit scheme, lets businesses benefit from provisions like 400% tax deductions or allowances and/or 60% cash payout for the investments made in undertaking improvements in innovation and productivity. The companies with the help of PIC Cash Payout facility can expand and improvise without any substantial hindrance. It would also be possible for the companies to deliver their services and products to the clients at cheaper costs. It would provide the companies enough space and opportunity to compete with the established companies around the globe.PIC
The PIC scheme facilitates Cash payout of up to $100,000 of expenditure each year. To claim this benefit, the business has to submit the PIC Cash Payout Application Form. You could also claim it on Income Tax Return. No prior approval is required for It and automation equipment. For other equipments, a prescribed list of qualified equipment is available. For these equipment, an Application for Approval of Equipment for PIC Form has to be submitted.
Skilled and experienced consultants are available in case the business house needs help in making PIC Cash Payout. They will solve all queries pertaining to the PIC scheme making the company’s work easier. If the company is found fraudulent while making PIC claims and Cash Payouts, the government takes serious steps against the company and it has to pay heavy penalties. Severe fraudulent cases may result in imprisonment coupled with paying huge fines.
While making the PIC Cash Payout Application, you need to provide details of the business, cash payout claim and qualifying cost.
The different activities that make a PIC Cash Payout Application are Acquisition and Leasing of PIC IT and Automation Equipment, Training of Employees, Acquisition and In-Licensing of Intellectual Property Rights (IPR), Registration of Patents, Trademarks, Designs and Plant Varieties (IPR), Research and Development (R&D) Activities and Design Projects.
What is PIC Bonus?
The PIC bonus is given to the businesses that have invested in PIC qualifying activities. The bonus awards the businesses a dollar-for-dollar matching cash bonus for relevant Years of Assessment. It is subject to a total cap of $15,000 in all 3 YAs taken together. The PIC Bonus is liable to tax. The bonus is given in addition to the existing 400% tax deduction or allowances and/or 60% PIC Cash Payout. In order to get the bonus, the business has to make a claim for the above-mentioned deductions and/or cash payout.
The PIC Bonus is given so that the business can cope up with the increasing operating costs like wages and rents. The bonus ensures that the business can make significant improvements in the field of productivity and innovation, which will lead to the overall growth of the company. The amount of Bonus to be given out to a business is decided on the basis of the expenditure made by the company with PIC-qualifying activities.
Businesses qualified to receive the Bonus are generally partnerships, sole-proprietorships or companies. They have to satisfy a few essential conditions to receive the Bonus.
The businesses do not have to apply for getting the Bonus in cases, which include 400% tax deductions/allowances in the income in the tax returns. It is calculated for each YA by the concerned authorities from the cash payout application forms once the income tax return has been filed. The businesses generally receive the PIC Bonus within a maximum of three months from the time they had filed their tax returns and if the business has submitted all necessary details pertaining to the business. For partnerships and sole-proprietorships, a PIC Enhanced Allowances/Deduction Declaration Form for Sole-Proprietors and Partnerships has to be submitted along with the income tax returns.
What is PIC Bonus?
The PIC bonus is given to the businesses that have invested in PIC qualifying activities. The bonus awards the businesses a dollar-for-dollar matching cash bonus for relevant Years of Assessment. It is subject to a total cap of $15,000 in all 3 YAs taken together. The PIC Bonus is liable to taxes. The bonus is given in addition to the existing 400% tax deductions or allowances and/or 60% PIC Cash Payout. In order to get the bonus, the business has to make a claim for the above mentioned deductions and/or cash payout.
Why do business owners need the PIC business?
The bonus ensures that the business can make significant improvements in the field of productivity and innovation, which will lead to the overall growth of the company. The PIC Bonus to be given out to a business is decided on the basis of the expenditure incurred on PIC-qualifying activities by the company.
Business owners who claim the bonus must know about the facts concerned with the PIC bonus:
If the business owners make effective use of the bonus then it will help the business to expand and compete with companies all around the globe, enhancing the economic condition of the country in which it is based.
Currently Singapore is capable occupying the successful position with the leading business enterprises that include all the SMEs. The PIC Scheme serves as the leading feature here, which allows you to clutch the position in the competitive market. Even the authority that means the IRAs incorporates all the favorable features and thus you can opt for a safe PIC Cash Payout Scheme. According the original calculation if you start with $100,000 you can receive a 60% cash back that signifies an amount of $60,000. Therefore, you save a great volume of cash that improves your business resources.
Role of IRAs
IRAs stands for the Inland Revenue authority of Singapore who monitors the entire financial transactions. So, you should provide only the true information knowing that you are on the safe hands. Initially, you need to agree the terms and conditions to receive the cash payouts that appear as the remarkable facilitating aspect.
Even the application forms that you submit are evaluated by IRAs due to which, you should be careful while filling out the form. The incomplete or the unauthorized forms will be immediately rejected and you will not receive the expected benefits. So, before you apply know the entire procedure that will help you to perform better along with the useful services representing the PIC cash payouts. PIC Grant therefore emerges as the most sophisticated feature that completely aids the financial support to the businesses all over Singapore.
Compute the Business Expenditures Properly
As mentioned above to employ the true monetary information you need to maintain a suitable infrastructure ensuring the accurate records of the expenditures in your business. Hence, you are able to put the right information and perform the entire system successfully. Monitor the financial deals in your business effectively knowing the exact cash outlays.
It helps you to claim the particular PIC scheme without any difficulties as you are carrying the authenticated monetary statements. Submit the valid PIC applications and take your business to a different level utilizing the PIC Scheme. Ensure that you are able to input all the accurate data that will enable you to achieve the authenticated services. Utilize the cash payouts and accumulate the business funds that will help you to establish an affluent set up representing the efficiency of your business. Finally, the PIC Grant Scheme becomes successful developing a suitable business organization.
The Singapore Government has increased the tax deductions and allowances to the qualifying businesses in the Budget 2014. The advanced and crucial changes in the financial incentives made through the PIC Plus Scheme are aimed at boosting the business operations throughout the country.
Features of PIC Plus Scheme
The PIC Plus Scheme is applicable for all qualifying businesses whether small and medium enterprises, start-ups or other businesses alike. They can enjoy 400% tax deductions or allowances on up-to S$600,000 of their expenditure per year.
The Particular YA’s eligible for the PIC Plus Scheme is as follows:
The combined expenditure cap of $1.2 million and $1.8 million for the three relevant years of assessment (YA’s) are from YA 2013 to YA2015 and YA2015 to YA2018 respectively. The expenditure cap had been increased from the $400000, as it was earlier in the PIC Scheme. It is beneficial for the business as they would be able to claim 400% tax deductions or allowances on an additional $200,000 in the qualifying expenditure in the above mentioned Years of Assessment.
Some Important Points to Remember
The cash payout option has been introduced to support and encourage the small and growing businesses which might suffer from cash constraints and can find it tough to innovate and improve their productively in the highly competitive market.
Eligibility Criteria for Cash Payout
The businesses, which would be termed qualified for the cash payout should satisfy the following conditions:
Application for PIC plus Scheme
The businesses qualifying for the PIC benefits could make the claim for deductions or allowances in their income tax return for the relevant YA by filling it within the due date of 15th April applicable for sole-proprietorships and partnerships and 30th November for companies.
Along with the useful financial deals, it is also necessary to avail the right consultancy service that helps you to acquire the services in the right way. Therefore, it appears as our prime responsibility to ascertain the accurate advices from the mediators who provide you the consultancy revealing the facilities you can receive from the PIC Scheme. Nowadays you can find manifold consultancy agencies providing the similar services. So, carefully comprehend the reputation of the particular organization. Moreover, you should know the entire system ensuring how it works along with the clients. After you understand that the agency accumulates the authenticated services, you can approach to know the entire process to claim the PIC Grant Scheme.
How you understand which consultant can be suitable for you?
Here you can perceive the major pointers representing how you select the ideal PIC Consultant providing the suitable advices:
So, if you feel that your consultant procures all the suitable features you can go ahead achieving a better business position accompanied with the suitable resources. The consultants in Singapore therefore show you the way through which you can comprehend success glorifying your entire business.
PIC Consultants in Singapore
Businesspersons in Singapore look for the ideal consultant that will help their business to attain an admirable position. Therefore, to receive the PIC Grant you need to meet the expert consultant who reveals you how you can do well for your business. Explore the accurate method that allows you to receive the suitable PIC Grant scheme. Reveal the entire business specifications to your consultant that will help him to show you the ideal way to reach the successful position. Help your business grab the attention of the feasible buyers with an affluent outlook for which you need ample funds. Your PIC Consultant understands that situation and thus provides you the opportunities utilizing which you incorporate the enviable output.
Each single business owner in Singapore knows about the PIC Scheme that originally signifies the Productivity and Innovation credit. It serves as the key feature that is utilized to enhance the entire productivity. Claim your expenditures and sustain an affluent volume of business capital that is essential to set up a well-organized system for your business. Simply, you need to show the genuine expenses and you can get the cash backs and other facilities. Here, you do not receive the direct cash rewards but can receive the tax deductions and other beneficial aspects that help you to protect your business funds.
Pros and Cons of PIC
Before you avail the services, you should have a clear view of the entire facilities you receive. PIC Grant allows you to acknowledge the suitable monetary schemes that you can utilize to ensure a successful business. You can achieve a good percentage of tax deductions that give your business a prosperous outlook.
However, you should go through the legal proceedings ensuring that you obtain the legitimate services. Therefore, Productivity Innovation Credit can give you the advanced feasible solutions along with the enhanced business prospect.
Get familiar with the YAs
Year of Assessment in short YA represents the schedule during which you achieve the possible benefits. So, compute the entire financial deals according to the YAs thus knowing the accurate facilities you gain. Select the ideal YA according to your business requirement that affords you the effective results. Be it a small-scale business or the big ones you should maintain the YAs that is useful to acquire the legitimate services. Make sure that you experience the particular services as you were revealed during the communication with the representative who suggests you the suitable PIC Scheme.
After you get confirmed with all the necessary attributes, you are eligible to employ the beneficial schemes that give you the possible outputs. Therefore, your business will not suffer only due to the economic deficiency. The PIC Scheme accumulate multiple facets such as PIC Bonus, PIC Cash Payouts, computation of tax etc. signifying how better you can utilize them setting up a strong business infrastructure. So, you are able to know the entire details of the Productivity Innovation Credit more precise PIC that accumulates the facilitating opportunities ensuring a growing business without any complicated situations. You would receive the complete security as you attain the ultimate monetary deals.
From the name itself you can understand the PIC Bonus can provide you the additional facilitating attributes that you can employ to incorporate a favorable business condition. Basically, PIC Bonus appears as the popular PIC Scheme that you can utilize to develop a successful business position. Developing the particular scheme the Government gives the businesses the adequate funds and thus you carry on your business without facing any strange circumstances. The IRAs calculate the exact amounts and thus you are able to receive the PIC Bonus accumulating the favorable business facilities.
Know the Criteria to Opt for the PIC Bonus
Once, you decide that you want to acknowledge the PIC Bonus make sure that you procure the suitable criteria that ensures you to receive the genuine PIC Scheme.After you understand the entire features, you can avail the particular service that comes out as the beneficial aspect for your entire business. The amount, which you should possess to become eligible for the specific scheme appears as $5,000. And, the year of assessment here represents complete three years that you need to maintain. Moreover, the company for which you want to obtain the PIC Bonus need to acquire at least 3 employees who should be the Singaporeans along with the CPF contributors.
All the SMEs in Singapore can apply for the PIC Bonus Scheme that gives you the experience of a better business standard. Therefore, establish a strong business set up in Singapore accessing the PIC Grant Scheme among which PIC Bonus serves as the best alternative. Here, you can access the flexible Bonus schemes that give you the ultimate opportunity ensuring a secured business. Your business will gain the enviable admiration and even you can increase the resources that enhance the overall set up.
How to apply for the PIC Bonus?
After you know about the entire features, you should understand the entire process that enables you to receive the specific opportunity. You can seek the help of a particular consultant who can guide you to complete the entire system. Also, if you wish you can do it yourself where you need to provide the accurate information regarding your company. After you complete all the necessary features, you can claim the service thus receiving the legitimate opportunities to continue with the business process free from all the obscurities.
This is the world where we cannot deny existence of small business houses and the growth of such industries. Hence, to help survive these small industries and to enhance the productivity Governments of all the countries have started implementing different types of rules and schemes. There is a hope that with these various beneficial and advanced schemes, these small industries can grow more. Among all these schemes, Singapore PIC scheme has become famous all parts of Singapore.
This is a special scheme which has been introduced by the Government of Singapore in the year 2010 with a planning to continue it as five year plan that is up to the year 2015. But, in the recent budget this plan has been changed and an extended program has been taken to carry on this PIC scheme till the year 2018. Before taking such scheme a company or business house whether it is a sole proprietor or partnership, the company must qualify the following situations:
With this scheme, the small companies will get effective cash payout system. The PIC Cash Payout is considered as the perfect option for the newly established industrial houses. To avail this cash payout option, these companies must follow the following rules in making some expenditure which are eligible under this scheme.
If a business house can make those above expenditure and if these small industries qualify to obtain such scheme, then they can do the PIC Claim up to $ 400000 till the year 2015 and afterwards $ 600000. Other than cash payout, the business houses also can get PIC bonus.