The Singaporean economy is experiencing a surge of business innovation, with entrepreneurs and companies of all sizes contributing to its strength and competitiveness on the global stage.
Among the various grants available to recognize and support these efforts, the Productivity and Innovation Credit (PIC) stands out as a well-known option.
PIC aims to enhance business productivity by rewarding innovative approaches in conducting business operations. As businesses embrace innovation, they not only benefit from tax deductions but also play a vital role in positively impacting the community and the overall economy.
Implemented in 2010 by the Inland Revenue Authority of Singapore, the PIC program offers businesses the opportunity to receive cash payouts or tax deductions of up to 400% per year. Every business in Singapore is eligible for PIC tax deductions, subject to certain guidelines related to eligible expenses. Some of these qualifying expenditures include prescribed automation equipment, training, research and development, acquisition and registration of intellectual property, and design expenditures.
Now, let’s address a common question: Can you claim PIC for your office door access system? The answer is yes. Office door access systems fall under the category of prescribed automated systems, making them eligible for PIC.
However, it’s essential to note that certain automated systems do not qualify for PIC, such as cars, refrigerators, furniture, motorcycles, renovation costs, uninterrupted power supply, CCTV, digital cameras, and retail store-purchased air conditioning systems.
To qualify for PIC, your office door access system must have been purchased and implemented within the relevant year of assessment, meeting the following criteria:
The business must have at least three local employees who hold Singapore citizenship.
The business must have incurred the minimum qualifying expenses set by PIC (S$55,000) within the assessment year.
The business must have active operations in Singapore.
While PIC offers numerous benefits, it’s crucial to maintain compliance and avoid fraudulent activities. The IRAS has taken a serious stance against false claims and misrepresentations, imposing severe penalties for those found guilty. Ensure that you file your PIC claims lawfully and accurately to safeguard your business’s reputation and avoid legal issues.
Taking advantage of the PIC grant for your office door access system not only enhances security and convenience but also provides your business with cash payouts and significant tax deductions. It’s an opportunity to contribute to the country’s economic growth while gaining a competitive edge for your business. Embrace innovation and explore more creative ways to conduct your business while reaping the rewards through PIC.