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Singapore Budget 2018: Singapore to streamline productivity grant schemes, support firms to build own innovations
TO make it easier for businesses to access support to adopt technologies and productivity solutions, the government will streamline existing grant schemes that support pre-scoped, off-the-shelf productivity solutions into a new Productivity Solutions Grant (PSG).
The PSG will provide funding support for up to 70 per cent of qualifying costs, Finance Minister Heng Swee Keat told parliament on Monday.
Businesses can apply for the PSG through the Business Grants Portal with effect from April 1, 2018.
The minister said the government would also raise the tax deduction on licensing payments for the commercial use of intellectual property.
"With the expiry of the Productivity and Innovation Credit scheme, the tax deduction on licensing payments has reverted to 100 per cent for YA2019 and beyond. I will raise this to 200 per cent, capped at S$100,000 of licensing payments per year," he said, adding that this cap ensures that smaller businesses would benefit more from this measure.
To support businesses to build their own innovations, the government will raise the tax deduction for IP registration fees from 100 per cent to 200 per cent, to help firms protect their intangible assets. This will be capped at S$100,000 of IP registration fees per year.
Tax deduction for qualifying expenses incurred on research and development done in Singapore will also be raised from 150 per cent to 250 per cent.
For more Budget 2018 stories visit bt.sg/budget18