Business innovation is the new catch phrase in the Singapore economy. There is much happening in the business sphere that grants recognition of businesses in what they are contributing to make the economy strong. Businesses, small to big, and entrepreneurs are making strides and moving towards an new way of conducting and viewing the business world. Much of Singapore has now entered a new era of business; one which places great emphasis on innovation. With innovation being implemented right down from small scale businesses to even larger businesses has increased the strength of the economy and making it even more competitive on the global sphere.
There are a number of grants that award business innovation in Singapore, and one of the well known is Productivity and Innovation Credit, or PIC. This grant is aimed at boosting the business’s productivity and awarding the efforts to employ innovative means of conducting business. For businesses, these grants are a useful form of motivation which helps boost drive towards contributing positively both to the community and the country’s economy in general. PIC was implemented in 2010 by the Internal Revenue Association of Singapore as a form of tax deductions for investments and businesses with innovative conduct.
Through this program, businesses are eligible for cash payouts or tax deductions of up to 400% per year. These attractive compensation promises do offer businesses with motivation and drive to continue with innovative solutions. Every business in Singapore is eligible for PIC tax deductions. But there are a few guidelines of eligibility regarding where expenses from the business have been incurred.
Some qualifying expenditures for PIC include prescribed automation equipment, training expenditures, R&D expenditures, acquisition of intellectual property, registration of intellectual property, and design expenditures.
Now that we have the basics covered, lets get to the question: can you claim a PIC for my office door access system? The answer is yes. From the list of eligible expenditures from the businesses, prescribed automated systems is one of them.
Below is the list of automated systems that do not qualify for PIC:
– Furniture and fittings
– Renovation costs
– Uninterrupted power supply
– Closed circuit television (CCTV)
– Digital camera
– Retail store purchased air conditioning systems
An office access system is an automated system which allows secure entry to an office premises. Not only is this feature a definite plus for a business, but it is also an innovative component PIC looks out for.
Additionally, in order to qualify, the purchase and implementation. Of the office access system must have been installed within the relevant year of assessment and adhere to the following criteria:
– The business must have a minimum of three local employees whom hold a Singapore citizenship.
– Earned the minimum qualifying expenses premiered to PIC (S$55000) within the quitting year of assessment.
– Have a business operation active in Singapore
A serious problem the IRAS has encountered with PIC from businesses has been fraudulent and ungrounded activities. Businesses have been making false claims and stretching the truth in order to gain more cash payout or a larger tax deduction from the IRAS. The IRAS takes such offences very seriously and are punishable by a costly penalty by law. Ensure you are filing your PIC claims lawfully and accurately to avoid any of the ugly run-ins with the law. Also, there are many false companies that claim to be accredited to file your business’s PIC for you–be wary and avoid them at all costs for they are likely to land you and your business’ reputation in an inconvenient situation.
PIC is a great solution for businesses who employ innovative solutions for their business environment and conduct their business in a manner that complies with the standards that promote the growth of the country’s economy. If your business has an automated office door access system, you are eligible to file for PIC and be eligible for cash payouts and tax deductions of handsome amounts. It isn’t too bad, is it? To be doing something good for the country’s economy while at the same time giving your business an edge and being rewarded for it? Not at all. In fact, it will motivate you to look for even more innovative ways to conduct your business and fortifying the economy overall. Above is an insight with this respect.