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.