Singapore Implements Design Tax Incentives

by Mary Swire, Tax-News.com, Hong Kong

03 June 2010

The “Productivity and Innovation Credit for Investments in Design” (PIC for Design) tax incentive scheme, introduced in Singapore’s 2010 budget, has been implemented from June 1.

PIC for Design, administered by DesignSingapore Council, provides tax deductions for businesses that invest in design, and aims to encourage continuous design innovation in businesses in Singapore.

Under the scheme, businesses can deduct 250% of qualifying expenditure on approved design projects from their income from 2011 to 2015, subject to a cap of SGD300,000 (USD214,000) for each year. In addition, a combined cap of SGD600,000 is set for the first two years (2011 and 2012) so as to help small- and medium-sized enterprises benefit from the scheme without rushing the implementation of their investments.

Design projects can be conducted either in-house with eligible designers or outsourced to eligible design service providers. All the manpower costs of in-house design projects will qualify. Where the design project is outsourced, 60% of the invoiced amount will qualify.

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