With constant threats to secure the existence in the open market, the basic qualities for a company to have is innovative idea and large production scale to meet the demand as well to provide the product in competitive price. In 2010, Inland Revenue Authority of Singapore (IRAS) encouraged entrepreneurs and businessmen in order to promote businesses in Singapore by introducing Productivity and Innovation Credit (PIC) scheme in the Annual budget. PIC scheme terms and regulation says, eligible companies will be benefitted with 100% matching cash bonus if the company spends $5,000 on qualifying activities. The major benefit of PIC scheme is 400% tax deductibility.
A lot of companies, who want to go for PIC scheme had a serious doubt that whether their website can be claimed under the PIC scheme in terms of the developing cost or not. But surely the clients can breathe a sigh of relief as IRAS explained that the software including website is covered under the PIC scheme and also can be claimed, but only if the website enhances the company productivity and innovation. The regulations say if the website costs you S$ 15,000, then your company can claim for the PIC.
Businesses, are eligible for the PIC scheme, must include following activities.
In addition with above-mentioned activities, to be eligible for the claim for your website under the PIC scheme, the concerned company must have active business in Singapore and also at least 3 local employees (Singapore citizens or Singapore permanent residents).