Productivity and Innovation Credit Bonus

PRODUCTIVITY AND INNOVATION CREDIT BONUS

Copyright © 2013 Rikvin Pte LtdLast updated on February 28, 2013

OVERVIEW: PIC BONUS

About PIC Bonus

The Productivity and Innovation Credit (PIC) Bonus gives businesses a dollar-for-dollar matching cash

bonus for YAs 2013 to 2015, subject to an overall cap of $15,000 for all 3 YAs combined.

This is given on top of the existing 400% tax deductions/allowances and/or 60% cash payout (“PIC cash

payout”) under the PIC scheme. To enjoy the PIC Bonus, businesses must have made a claim for the 400%

tax deductions/allowances and/or the PIC cash payout.

The PIC Bonus is taxable.

Copyright © 2013 Rikvin Pte LtdLast updated on February 28, 2013

QUALIFYING CONDITIONS

Qualifying Conditions

Businesses eligible for the PIC Bonus are sole-proprietorships, partnerships and companies that have:

• incurredatleast$5,000inPIC-qualifyingexpenditure during the basis period for the YA in which a PIC

Bonus is claimed;

• active business operations in Singapore; and

• at least 3 local employees (Singapore citizens or Singapore permanent residents with CPF contributions)

excluding sole-proprietors, partners under contract for service and shareholders who are directors of

the company.

Copyright © 2013 Rikvin Pte LtdLast updated on February 28, 2013

COMPUTING PIC BONUS

YA 2013 YA 2014 YA 2015

Qualifying PIC Expenditure $5,000 $5,000 $5,000

OPTION 1: PIC Cash Payout

$3,000 ($5,000 x 60%)

$3,000 ($5,000 x 60%)

$3,000 ($5,000 x 60%)

OPTION 2: PIC Tax Credit

$3,400 tax deduction ($5,000 x 68%)

$3,400 tax deduction ($5,000 x 68%)

$3,400 tax deduction ($5,000 x 68%)

PIC Bonus $5,000 $5,000 $5,000

Total PIC Benefits$8,000 $8,000 $8,000

or $8,400 or $8,400 or $8,400

You will receive an equal amount in PIC bonus on every dollar that you spend on qualifying activities,

subject to a cap of $15,000 over YAs 2013 to 2015.

NOTE:

• Choose Option 1 if your business is not currently profitable or if you want a cash payout.

• Choose Option 2 if your business is profitable to reap the maximum tax credit.

1 1 1

2 2 2

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This material has been prepared by Rikvin for the exclusive use of the party to whom Rikvin delivers this material. This material is for informational purposes only and has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Where the source of information is obtained from third parties, Rikvin is not responsible for, and does not accept any liability over the content.

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