by singaporerikvin

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Productivity and Innovation Credit Bonus

Published Apr 1, 2013 in Business & Management
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Last updated on February 28, 2013 OVERVIEW: PIC BONUS About PIC Bonus The Productivity and Innovation Credit (PIC) Bonus gives businesses a dollar-for-dollar matching cash bonus for YAs 2013 to 2015, subject to an overall cap of $15,000 for all 3 YAs combined. This is given on top of the existing 400% tax deductions/allowances and/or 60% cash payout (223PIC cash payout224) under the PIC scheme. To enjoy the PIC Bonus, businesses must have made a claim for the 400% tax deductions/allowances and/or the PIC cash payout. The PIC Bonus is taxable.

Last updated on February 28, 2013 QUALIFYING CONDITIONS Qualifying Conditions Businesses eligible for the PIC Bonus are sole-proprietorships, partnerships and companies that have: during the basis period for the YA in which a PIC Bonus is claimed; active business operations in Singapore; and at least 3 local employees (Singapore citizens or Singapore permanent residents with CPF contributions) excluding sole-proprietors, partners under contract for service and shareholders who are directors of the company.

Last updated on February 28, 2013 COMPUTING PIC BONUS YA 2013 YA 2014 YA 2015 Qualifying PIC Expenditure $5,000 $5,000 $5,000 OPTION 1: PIC Cash Payout $3,000 ($5,000 x 60%) $3,000 ($5,000 x 60%) $3,000 ($5,000 x 60%) OPTION 2: PIC Tax Credit $3,400 tax deduction ($5,000 x 68%) $3,400 tax deduction ($5,000 x 68%) $3,400 tax deduction ($5,000 x 68%) PIC Bonus $5,000 $5,000 $5,000 Total PIC Benefits $8,000 $8,000 $8,000 or $8,400 or $8,400 or $8,400 You will receive an equal amount in PIC bonus on every dollar that you spend on qualifying activities, subject to a cap of $15,000 over YAs 2013 to 2015. NOTE: Choose Option 1 if your business is not currently profitable or if you want a cash payout. Choose Option 2 if your business is profitable to reap the maximum tax credit. 1 1 1 2 2 2

RIKVIN PTE LTD 20 Cecil Street, #14-01, Equity Plaza, Singapore 049705 Main Line : (+65) 6320 1888 Fax : (+65) 6438 2436 Email : Website : Reg No 200100602K EA License No 11C3030 This material has been prepared by Rikvin for the exclusive use of the party to whom Rikvin delivers this material. This material is for informational purposes only and has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Where the source of information is obtained from third parties, Rikvin is not responsible for, and does not accept any liability over the content. Helpful Links: Company Registration Singapore Work Visas Business Services Accounting Services Offshore Company