The Singapore government introduced the productivity and innovation credit scheme in the year 2010. Under the scheme, the government offered up to 400% of tax reduction or allowances and also a 60% cash payout when an enterprise invested in research and development, training, automation and innovation. These benefits were first made available in the year of assessment 2011.
Recently the scheme has been extended to a few more years. Many businesses have benefited from the scheme and have upgraded their businesses, trained their employees and have invested money in research and development. Overall, the aim of Singapore government under the scheme is to enhance the innovation and research and development capability of enterprises based in Singapore.
There are six activities under which this grant is authorised. Some of the activities under this require prior approval whereas some of the activities do not require any kind of approval from the ID RES. The terms of the PIC bonus were further simplified in the 2013 budget to help companies in improving productivity and innovation.
Website Development Eligible for PIC Grant
There are many businesses that are not clear on many provisions of this scheme. As far as website development is concerned, it is covered under the productivity and innovation credit scheme. However, since website development is covered under the scheme, it does not mean that every business is going to get this grant for developing their website. Businesses also need to fulfill certain other to ensure that they are eligible for the grant.
As mentioned above, all of the businesses are eligible for this, provided they meet the terms and conditions. The government is also going to give a special PIC bonus to companies if they have spent a minimum of $5000 on one of the PIC activities. Qualification criteria is tough but IRAS has made it simple for businesses to check whether they can qualify or not. All of the details for this scheme are readily available on their website.
Consumers Expect Websites
In today’s world, every professional business is expected to have a website. If an enterprise does not have a website, most of the customers presume may ignore that business. Experts estimate that over 85% of consumers start searching for their problems on a search engine. Consumers also read reviews of a business before deciding to spend their money.
It is important to understand that this does not just apply to Internet based businesses but consumers consider online reviews for businesses in the real-world too. Therefore, it is essential to have a professional website to survive and grow in today’s environment.
It is true that setting up a website is tough and it is especially true in the case of businesses who want to set up an e-commerce shop. It is important to hire a professional e-commerce website development company to ensure that all the aspects are taken care of. Since PIC grants are forgiving and allow buying various kinds of things to benefit your business, you should take advantage of this opportunity and have your website developed.
There is a lot of competition online today. As mentioned above, businesses realize the importance of having a website and therefore, have invested a lot of money in getting a professional website developed. Therefore, it is important to invest in a professionally designed website, as a user-friendly interface is essential to attract and retain traffic online. There are lots of expert Web development companies in Singapore that can help you in setting up your online shop in a proper manner, within a fixed schedule.
Since you already have expertise in your off-line business, having a website increases your reach in a big way. With PIC grant, you do not need to spend too much money out of your own pocket, as the grant will cover many expenses. People are not afraid of spending money online. In fact, given a choice, most of the consumers prefer to shop online from the comfort of their home or on their smart phones. Another advantage of having an online shop is that it is easy to maintain the website with little maintenance. Also, you do not need to spend extra money on rent and other overheads.
As mentioned above, PIC grants are available for website development. You just need to put your plan in action and get a website developed to expand your business. The Singapore government has set up this grant to help businesses and you should definitely take advantage of this grant to expand your business.
So, PIC grant not only saves your business money in the form of tax but also allows you to grow your business at the same time.