Innovation and Capability Voucher (ICV)
What is ICV ?
The Innovation and Capability Voucher (ICV) is a simple to apply, easy-to-use voucher valued at $5,000 by Spring Singapore, to encourage SMEs to take their first step towards capability development. SMEs can use the voucher to upgrade and strengthen their core business operations through consultancy in the areas of innovation, productivity, human resources and financial management. Apart from consultancy, ICV also supports SMEs in the adoption and implementation of simple solutions to improve business efficiency and productivity.
Who can apply?
All local SMEs can apply for ICV if they meet the following criteria:
- Registered and operating in Singapore
- Have a minimum of 30% local shareholding
- Have group annual turnover of not more than $100 million OR group employment size of not more than 200 employees.
Productivity Solutions
To encourage more SMEs to embark on their first steps towards capability development, ICV supports SMEs in the adoption and implementation of simple solutions to improve business efficiency and productivity. Each SME can apply up to a maximum of two vouchers to implement productivity solutions out of the available eight vouchers for each SME.
Non-supportable items
With effect from 1 December 2014, the scope of supportable productivity solutions under the Innovation & Capability Voucher (ICV) will be refined to help SMEs adopt solutions that bring out holistic and significant productivity improvements to their operations. The purchase of website and mobile application development will not be supported unless they are part of Integrated Solutions.
For the updated list of non-supportable items, please click here.
How can we help you ?
As a software development and consultancy company, we can assist you in improving the productivity of your business process in the following ways:
- Purchase of our ICV Integrated Solution - a 4-in-1 Customer-Relationship Management (CRM), Accounts Management, SMS Marketing and SMS Reminder software, integrated with a Dell laptop running Windows 8.1 and a Canon Multifunctional printer.
- Customized software solution - we design and developed software system customized to your business needs. We can provide you with a tailor-made software solution that can increase your productivity and business efficiency.
Contact us now to make full use of the Singapore ICV scheme and improve your business productivity!
Useful Links on ICV scheme
Productivity and Innovation Credit (PIC)
What is PIC ?
The Productivity and Innovation Credit (PIC) scheme is a government scheme that gives Singapore's Small and Medium Enterprises (SME) significant tax reductions and payouts for their investments in research & development (R&D), innovation, automation and training. The PIC scheme aims to encourage businesses to invest in a broad range of activities along the innovation value chain to improve innovation and productivity from Years of Assessments 2011 to 2015.
What does PIC covers ?
PIC covers spending on the following six business activities:
- Acquisition or leasing of PIC Information Technology (IT) and Automation Equipments
- Training of Employees
- Acquisition and In-licensing of Intellectual Property Rights
- Registration of patents, trademarks, designs and plant varieties
- Research & Development (R&D) activities
- Design projects approved by DesignSingapore Council
Tax Deduction
All businesses will be eligible for the PIC, which will be available for 5 years. The qualifying expenditure must be incurred during the basis periods for Years of Assessment (YA) 2011 to 2015.
Businesses can deduct 400% Tax Deductions for the first S$400,000 of their expenditure per year in each of the six qualifying activities, subject to:
- For YA 2011 and 2012 - a combined cap of S$800,000 of expenditure; and
- For YA 2013 to 2015 a combined cap of S$1,200,000 of expenditure.
Cash Payout Option
To support small and growing businesses which may be cash-constrained, to innovate and improve productivity, businesses can exercise an option to convert their expenditure into a non-taxable cash payout. They can convert up to $100,000 (subject to a minimum of $400) of their total expenditure in all the six qualifying activities into cash payout.
This PIC cash payout option is available from YA 2011 to YA 2015 at a conversion rate of 30% for YA 2011 and YA 2012; and 60% for YA 2013 to YA 2015. The higher cash conversion rate of 60% was announced in Budget 2012 to further support businesses in investing in innovation and productivity.
For YA 2011 and YA 2012, businesses can opt to convert up to a combined cap of $200,000 qualifying expenditure for all six qualifying activities, into cash payout. The total cash payout for YA 2011 and YA 2012 is therefore a maximum of $60,000 ($200,000 x 30%).
For newly incorporated/registered businesses whose first YA is YA 2012, the expenditure cap for all six qualifying activities is $100,000 and the maximum cash payout is $30,000 for YA 2012.
For YA 2013 to YA 2015, businesses can receive cash payout up to $60,000 ($100,000 x 60%) each year with the higher conversion rate of 60%.
Businesses eligible to opt 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 PRs 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 this three-local-employees eligibility if it contributes CPF on the payrolls of at least three local employees in the last month of its basis period for the qualifying YA.
Application for Cash Payout
Submit Cash Payout Form to IRAS
You can submit your application anytime after the end of your business accounting year in which the qualifying expenditure is incurred but no later than the filing deadline of your business income tax return.
For YA 2013 to 2015, you may opt for cash payout on a quarterly basis anytime after the end of each financial quarter but no later than the filing deadline of your business income tax return.
How can we help you ?
As a software development and consultancy company, we can assist you in improving the productivity of your business process in the following ways:
- Purchase of our product MoCo SMS Suite - a CRM solution with SMS Marketing and Reminder features
- Customized software solution - we design and developed software system customized to your business needs. Be it web development or desktop applications, we can provide you with a tailor-made solution.
Contact us now to make full use of the Singapore PIC scheme and improve your business productivity!
Useful Links on PIC scheme