Productivity and Innovation Credit Bonus

1
PRODUCTIVITY AND INNOVATION CREDIT BONUS
2
OVERVIEW PIC BONUS
About PIC Bonus
The Productivity and Innovation Credit (PIC)
Bonus gives businesses a dollar-for-dollar
matching cashbonus 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
(PIC cashpayout) under the PIC scheme. To
enjoy the PIC Bonus, businesses must have made a
claim for the 400tax deductions/allowances
and/or the PIC cash payout.
The PIC Bonus is taxable.
Last updated on February 28, 2013
Copyright 2013 Rikvin Pte Ltd
3
QUALIFYING CONDITIONS
Qualifying Conditions
Businesses eligible for the PIC Bonus are
sole-proprietorships, partnerships and companies
that have
incurred at least 5,000 in PIC-qualifying
expenditure 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
Copyright 2013 Rikvin Pte Ltd
4
COMPUTING PIC BONUS
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.
YA 2013
YA 2014
YA 2015
Qualifying PIC Expenditure
5,000
5,000
5,000
OPTION 1
3,000
3,000
3,000
(5,000 x 60)
(5,000 x 60)
(5,000 x 60)
PIC Cash Payout
OPTION 2
3,400 tax deduction
3,400 tax deduction
3,400 tax deduction
(5,000 x 68)
(5,000 x 68)
(5,000 x 68)
PIC Tax Credit
PIC Bonus
5,000
5,000
5,000
1
1 1
8,000
8,000
8,000
Total PIC Benefits
2
2
2
or 8,400
or 8,400
or 8,400
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.
Last updated on February 28, 2013
Copyright 2013 Rikvin Pte Ltd
5
Helpful Links
Company RegistrationSingapore Work
VisasBusiness ServicesAccounting
ServicesOffshore Company
RIKVIN PTE LTD
20 Cecil Street, 14-01, Equity Plaza, Singapore
049705
Main Line
(65) 6320 1888
Fax
(65) 6438 2436
Email info_at_rikvin.comWebsite
www.rikvin.com
Reg No 200100602K
EA License No 11C3030
This material has been prepared by Rikvin for the
exclusiveuse of the party to whom Rikvin
delivers this material.This material is for
informational purposes only and hasno regard to
the specific investment objectives,
financialsituation or particular needs of any
specific recipient.Where the source of
information is obtained from thirdparties,
Rikvin is not responsible for, and does not
acceptany liability over the content.
Copyright 2013 Rikvin Pte Ltd