Government Grants
- iSPRINT
- PIC
This scheme addresses SME’s various infocomm adoption needs – From simple solutions for the improvement of your business operation to innovative used of technology for the transformation of your business or sector.
SMEs can claim up to 70% of the qualifying costs, capped at S$2,000 for the purchase of the first packaged solution under each solution category.
How to Qualify for iSPRINT grant?
Your business must meet the following requirements to qualify for iSPRINT.
1. You are a local SME with
- Minimum 30% local shareholding AND
- Company’s Group annual sales turnover not more than S$100 million OR Company’s Group employment size not more than 200 workers
2. You do not already own/ use any other solutions that you are going to adopt (i.e. accounting, payroll or POS solution).
The PIC (Production and Innovation Credit) scheme supports investments in Productivity and Innovation. Businesses, including sole-proprietors, can enjoy tax savings in the form of Cash Payout and/or Tax Deduction when they invest in any of these six productivity improvement activities:
- Training of Employees
- Acquisition of Intellectual Property Rights
- Registration of patents, trademarks, design and plant varieties
- Research and development activities
- Investment in approved design projects
- Acquisition or leasing of PIC Automation Equipment
Benefits under PIC grant:
1) 400% Tax Deduction/Allowances
How it works:
Businesses can enjoy 400% tax deduction/allowances on up to $400,000 of their expenditure per year in each of the six qualifying activities instead of the 100% deduction/allowances under the existing tax rules.
The annual expenditure cap of $400,000 may be combined as follows:
| Year of Assessment (YA) | Expenditure Cap per Qualifying Activity | Tax Deduction per Qualifying Activity |
| 2011 and 2012 (Combined) | $800,000 | $3,200,000 (400% x $800,000) |
| 2013 to 2015 (Combined) | $1,200,000 | $4,800,000 (400% x $1,200,000) |
2) Cash Payout Option
How it works:
Eligible businesses can apply to convert up to $100,000 of their total expenditure in all the six qualifying activities into a non-taxable cash payout.
The cash payout option is to support small and growing businesses which may be cash-constrained to innovate and improve productivity.
The maximum cash payout is calculated as follows:
| Year of Assessment (YA) | Expenditure Cap for All Qualifying Activities | Cash Payout Rate | Maximum Cash Payout |
| 2011 and 2012 (Combined) | $800,000 | 30% | $60,000 for 2 years (30% x $200,000) |
| 2013 to 2015 (Combined) | $1,200,000 | 60% | $60,000 per YA (60% x $100,000) |
Benefits under PIC grant:
Businesses eligible to apply for the cash payout are sole-proprietorships, partnerships, companies (including registered business trusts) that have:
- incurred qualifying expenditure and are entitled to PIC during the basis period for the qualifying YA;
- active business operations in Singapore;
- 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.
A business is considered to have met the 3-local-employees condition if it contributes CPF on the payroll of at least 3 local employees in the relevant month.
*Note: Business will also be qualified for PIC Bonus if qualified for PIC Grant
Benefits under PIC grant:
The PIC Bonus gives businesses a dollar-for-dollar matching cash bonus 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 deduction/ allowances and/or 60% cash payout (“PIC cash payout”) under the PIC scheme. To enjoy the PIC Bonus, businesses must have made a claim for the 400% tax deductions/allowances and/or the PIC cash payout.
The PIC Bonus is taxable.
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