Have you been putting off running eLearning or instructor-led training due to budget constraints? Well, now is the time to cash in on government incentives.
The Key Points
- All businesses will be eligible for the Credit between 2011 and 2015.
- Deductions of up to 250% apply for expenditure on staff training.
- Qualifying expenditure is capped at $300,000 each year.
- Qualifying expenditure can include outsourced as well as in-house training.
- Businesses are entitled to claim training costs of both local Singaporean staff and foreign staff.
- Cash grants of up to $21,000 per year apply for small businesses.
In the recent 2010 budget, the Singaporean government announced the introduction of a Productivity and Innovation Credit, designed to encourage companies to advance and innovate. This Credit will provide significant tax deductions for companies investing in a range of activities, including staff training.
The qualifying training expenditure will cover both in- house accredited training and outsourced training, including course fees paid to external training service providers.
Nick Dorney, Director of Key Accounts at A.S.K Learning had this to say about the Credit, "This is a fantastic initiative by the Singaporean Government. What a great way to support local business to develop the skills and performance of their staff to achieve greater business results! The tax deductions even extend to staff of Singaporean companies based in other countries, so it ensures that larger businesses can get consistent, across-the-board training out across their networks."
Yes, that’s right. Qualifying training costs include those incurred for training of all employees, both local to Singapore and foreign employees. There is also no restriction on the location in which the training is conducted.
Examples of qualifying expenditure are external course fees for staff; as well as costs incurred on internal Workforce Skills Qualification ("WSQ") courses for employees’ skills upgrading. For these business expenses, the first $300,000 per year is eligible for a 250% tax deduction. Anything over $300,000 spent attracts a 100% tax deduction.
Nick says, "Small companies, with at least 3 local employees can even apply for their Credit as a cash grant. This is a great boost to start-ups and growing businesses that may be cash-constrained or those that currently have low taxable income." Up to $300,000 of their Credit can be converted at a rate of 7% into a cash grant of up to $21,000 each year.
To find out more information about the eligibility of A.S.K Learning’s courses, contact our Singapore Team or visit http://www.iras.gov.sg/irashome/PIcredit.aspx