A2000 Solutions Pte Ltd is a Singapore accounting software developer; providing ERP solution, financial accounting software, sales and distribution software, point of sales, payroll and inventory management system that empowers small and medium sized companies.

 
 
STRENGTH OF A2000  
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Government Support Grants  
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Strength of A2000 Government Support Grants

Government Support Grant

Situation

Many small to medium-sized companies are caught in a difficult situation of managing growth with appropriate management information systems.

They face the burden to comply with statutory reporting, effective management and productivity with out-dated software. While larger companies have the flexibility to implement ERP system to manage these, our growing SME enterprises usually rely mainly on the same labor pool that grew with the company. And these lack the exposure and awareness what benefits an ERP implementation can do for them in automating mundane processes.

The good news is the Singapore Government have in place many assistance schemes to help SMEs develop newer and better capabilities.


Productivity & Innovation Credit (PIC)

The PIC scheme supports investments in Productivity and Innovation. Businesses investing in productivity improvements can now enjoy huge tax savings under PIC scheme which gives up to 400% tax deduction or 60% cash payout to companies investing in automation equipment and activities. These include software and hardware investments, as well as training.

There are two options:

  1. 400% Tax Deduction

    For YA 2011 to YA 2015, you can enjoy 400% tax deduction on up to $400,000 of your investment spending per year in software and hardware investments, as well as training. This means your business will be entitled to a tax deduction of up to $1.6 million (400% x $400,000) for software and hardware investment.

    Below is the example of tax calculation for your reference:
    By spending $100,000 in software and/or hardware, you can file an expenditure of $ 400,000 (400% x $100,000) and get up to $68,000 ($400,000 x 17%) tax savings. So you can enjoy 68% ($68,000 of $100,000) savings on your software and/or hardware costs




  2. Cash Payout Option

    For YA 2011 to YA 2013, you can apply to convert up to $100,000 of your investment spending per year into a non-taxable cash payout at a conversion rate of 60%. The cash payout is a good option for small and growing business that has employed at least three (3) local employees (Singapore Citizens or Permanent Residents with CPF contributions).

    Below is the example of tax calculation for your reference:
    By spending $100,000 in software and/or hardware, you convert your software and/or hardware investment into cash payout of $60,000 ($100,000 x 60%).
    So you can enjoy 60% ($60,000 of $100,000) savings on your software and/or hardware costs

Note: The above information are extracted via IRAS web site HERE. Please refer to this IRAS link for the latest policies or amendments (if any).


How to claim PIC?

  1. Claim tax deduction in income tax return (400% tax deduction)
  2. Submit PIC cash payout application form (Cash payout)

When to Submit?

Any time after the business accounting year-end but not later than the income tax return filling due date of income tax return for that YA.

Contact us for more information on PIC, or you may check from IRAS Website.


For more information please click HERE

 
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