Wednesday, March 7, 2012

PIC aimed at small businesses

usiness Times: Tue, Mar 06
ALTHOUGH the Productivity and Innovation Credit (PIC) scheme is available to all enterprises, it is in fact designed very much with small businesses in mind. PIC is available to all enterprises and they can qualify without having to meet any special criteria. All businesses including small and micro enterprises, as well as sole proprietors, can benefit from PIC.

Based on tax returns filed last year, one in three, or more than 25,000 small companies - defined as those with $10 million in turnover or less - claimed PIC. This is a good start since 2011 was the first year of PIC claims. We are quite confident that with improved awareness, more SMEs will be able to take advantage of the PIC.

Since the PIC was introduced two years ago, we have also acted on feedback and improved the scheme to better benefit small businesses.

First, recognising the value of cash flow to small businesses, we allowed them to opt for a cash payout as an alternative to tax deductions. So, for example, if a small business incurred $10,000 worth of qualifying expenditure, it could previously get a cash payout of $3,000. From this year, the cash payout is doubled to $6,000.

Second, the cash payout can now be claimed at the end of each financial quarter, rather than at the end of each financial year. For SMEs, this further eases cash flow.

Third, we have made it easier for businesses to claim PIC for in-house training. And they can now claim up to $10,000 per year on their in-house training costs without the need for certification by Workforce Development Agency (WDA) or Institute of Technical Education (ITE). This change arose from many of the feedback that we received about how it would particularly benefit SMEs...

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Martin Koh/ Sherry Tang
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1 comment:

  1. That's really massive exposure post and I must admire you in this regard.

    PIC Scheme