Small and medium enterprises (SMEs) in Singapore needing help to apply for the Productivity and Innovation Credit (PIC) will be able to attend free clinics to get advice from the Enterprise Development Centres (EDCs) and the Inland Revenue Authority of Singapore (IRAS) from 13 April 2011.

Introduced last year, the PIC provides businesses with tax benefits for investing in a broad range of productivity improvement and innovation activities.

The free clinics, which are jointly organised by the EDCs and supported by IRAS and SPRING Singapore, are timely as SMEs will begin tax filing soon.

The half-day clinics will be held once a week for three months, from April to June 2011, at the five EDCs located at the Association of Small and Medium Enterprises, the Singapore Manufacturers’ Federation (SMa), the Singapore Chinese Chamber of Commerce and Industry, the Singapore Indian Chamber of Commerce and Industry and the Singapore Malay Chamber of Commerce and Industry. Tax officers from IRAS and EDC advisors will provide one-to-one consultation for each SME. The EDCs, IRAS and SPRING hope to reach out to at least 150 SMEs. If response is good, more clinics will be organised after the initial three-month period.

At the one-to-one consultation sessions, SMEs will:

• Find out the tax benefits of PIC
• Be familiar with the various options – cash payout, tax deduction
• Be assessed on whether their productivity and innovation expenditure qualify for tax benefits under PIC. The six areas covered under PIC are:

1. Purchase/Lease of Prescribed Automation Equipment (e.g. laptops and computers)
2. Training of Employees
3. Acquisition of Intellectual Property (e.g. Trademarks and Patents)
4. Registration of Intellectual Property (e.g. fees paid to IPOS for registering trademarks or patents)
5. Research & Development
6. Approved Design Projects

The first clinic will be held at the EDC@SMa on 13 April 2011. SMEs interested in signing up for this and subsequent free consultation sessions can register online at www.smeportal.sg. 

Inland Revenue Authority of Singapore
SPRING Singapore