In the Singapore Budget 2018, various tax changes and initiatives were introduced. Among which, there are four areas that small and medium sized companies may like to tap on.
1) Productivity Solutions Grant (PSG)
With the expiry of the PIC scheme in YA 2018, businesses can no longer make claims under the PIC. The Productivity Solutions Grant (PSG) is a new initiative that can fill this gap. Under the PSG, businesses can obtain up to 70% funding for the adoption of pre-scoped, packaged solutions to improve productivity. Some industries in focus include F&B, retail, e-commerce and trading. Businesses in other industries can look to benefit from solutions for CRM, HR and file management.
2) Double Tax Deduction for Internationalisation (DTDi)
This scheme is useful for businesses that undertake/participate in:
- - overseas business development trips/ missions,
- - overseas investment study trips/ missions,
- - overseas trade fairs, or
- - approved local trade fairs.
Businesses that engage in the above activities and meet qualifying conditions may claim 200% tax deduction on qualifying expenses. Qualifying expenses up to $150,000 per Year of Assessment are eligible for double tax deduction claim without prior approval from Enterprise Singapore or Singapore Tourism Board. This claim will be made in the company’s corporate tax return.
3) Business and IPC Partnership Scheme (BIPS)
Businesses that volunteer their services at Institutions of a Public Character (IPCs) or second their staff to IPCs can look to benefit under the Business and IPC Partnership Scheme (BIPS). 250% tax deduction on qualifying expenditure incurred, such as basic wages and related expenses, is available. Businesses who are interested in this scheme can get in touch with the IPC and agree on the volunteer services and scope via the BIPS Service Giving Declaration Form. The 250% tax deduction will be made in the company’s corporate tax return.
4) Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) combines the existing Global Company Partnership (GCP) Grant and Capability Development Grant (CDG) administered by SPRING and IE Singapore respectively. Businesses engaging in market & business development, innovation & productivity and core function & capability development can benefit under the EDG through funding support of up to 70%. This new scheme will kick in in Q4 2018 and interested businesses can apply via the Business Grants Portal.