Business Benefits Calculator for 2010
The Business Benefits calculator allows you to get an indicative figure of the benefits that your business will stand to receive in 2010 for the Productivity and Innovation Credit scheme and the Job Credits scheme.
The Productivity and Innovation Credit was introduced in Singapore Budget 2010 to encourage businesses to invest in a range of 6 activities along the innovation value chain. Specifically, it will cover spending on: R&D; registration of Intellectual Property (IP); acquisition of IP; design activities; automation through technology or software; and training. Under the scheme, all businesses can enjoy 250% tax deduction of the first $300,000 of expenditure in each of these 6 qualifying activities*. The scheme will be available from Year of Assessment (YA) 2011 to YA 2015. In addition, eligible businesses have the option to convert up to $300,000 of their Productivity and Innovation Credit into a cash grant of up $21,000. This cash conversion component will be available from YA 2011 to YA 2013.
*Businesses can combine the $300,000 cap per YA for the first two years into a $600,000 cap for 2 years. They can therefore deduct from their taxable income 250% of the first $600,000 expenditure on each activity for YA 2011 and YA 2012 combined.
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The Jobs Credit scheme was introduced in the Singapore Budget 2009 to encourage businesses to preserve jobs in the downturn. It provides a significant incentive for businesses to retain existing workers, and where their business warrants, to employ new workers. As announced in October 2009, the Government will extend the Jobs Credit scheme for half a year with another two payments at stepped-down rates in March and June 2010. The Jobs Credit scheme will close with the Second Extended Payment in June 2010.
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For more information on other Budget 2010 initiatives that may benefit your business, you may wish to refer to our info pamphlet for Businesses (
775kb), or get more details from the Key Budget Initiatives here.
