As an IT service firm, we have come across our fair share of prospective clients who are using technologies that are either outdated or unsuitable for commercial use. Now just imagine how detrimental this can be for business operations, especially when the email servers are not working or a workstation breaks down just hours before a deadline!

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We have also come across situations where an IT upgrade is being put off because it is too costly for the business. But what if we told you that you can actually get a 60% subsidy for it?

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PRODUCTIVITY AND INNOVATION CREDIT (PIC) SCHEME

Under the PIC scheme, companies here can enjoy a whole host of benefits that helps to offset the costs of running a business. Such benefits include a 400% tax deduction or allowances and a cash payout of up to $60,000.

So in other words, if you purchase any IT or automation equipment that is on this list, you will only need to fork out 40% of the total cost because the rest will be covered under the cash payout option of the PIC scheme.

 

WHO ARE ELIGIBLE?

If you have active business operations in Singapore and have at least three local employees, then you are eligible for the scheme! Just make sure that the incurred expenditures are entitled to PIC during the basis period for the qualifying Year of Assessment.

For more information on the cash payout option under the PIC scheme, click here or visit the IRAS website.

 

Author

Nora Fong

One thought on “Getting new IT for your business might be cheaper than you think

  1. […] this year, we talked about the PIC scheme and how it can help businesses to offset the cost of IT upgrades. Now that Budget 2014 has been unveiled, the PIC scheme has been […]

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