PRESS RELEASE Report

A new tax incentive scheme to encourage companies to adopt design innovation, entitled the ‘Productivity and Innovation Credit for Investments in Design’ (PIC for Design), will be implemented on 1 June 2010. The “PIC for Design” is part of the ‘Productivity and Innovation Credit’ announced in the Singapore Budget 2010 which provides significant tax deductions for investments in a broad range of activities along the innovation value chain, including Design.

2 The scheme, which will be administered by the DesignSingapore Council (Dsg), aims to encourage pervasive and continuous design innovation in companies in Singapore. The “PIC for Design” will be available for five years, from the Years of Assessment (YA) 2011 to 2015. Companies can enjoy a deduction of up to 250% of their total income (capped at $300,000 for each YA) if they incur the qualifying expenditure on approved industrial and product design projects from YA 2011 to YA 2015. For the first two YA, a combined cap of $600,000 is set to help small and medium enterprises benefit from the Credit scheme without them having to rush to complete the implementation of their investments. Under the Scheme, businesses will also be able to convert their credit deductions into a cash grant payout.

3 To qualify for the Scheme, the design project must be related to industrial and product design activities and result in the final design of a physical product. The design project must also result in the creation of new intellectual property registered with the Intellectual Property Office of Singapore (IPOS) in the forms of registered design or patented invention. In addition, the design project must follow through an entire design process and must be conducted and completed in Singapore within two years.

4 Mr Jeffrey Ho, Director of Dsg, said “The DesignSingapore Council, through the “PIC for Design” tax incentive scheme, hopes to encourage businesses to leverage on design and design thinking in their business strategy to enhance their global competitiveness.”

5 Businesses interested to obtain more information on the eligibility and application details of the Scheme can contact the “PIC for Design” Hotline at 6333 3737 or visit the Dsg website at www.designsingapore.org.

Fact Sheet

What is the PIC and PIC for Design?	The ‘Productivity and Innovation Credit’ (PIC) is a slew of tax incentives for companies that have invested in projects that result in better productivity and innovation. The Productivity and Innovation Credit for Investments in Design (PIC for Design) is a component of the PIC that encourages pervasive and continuous design innovation in companies in Singapore. It is administered by DesignSingapore Council (Dsg).
Who is eligible and what are the benefits?	All businesses are eligible for the PICfrom the Years of Assessment (YA) 2011 to 2015. (Please refer to www.designsingapore.org for details of eligibility) Businesses can deduct 250% of qualifying expenditure from their taxable income if they spend on approved Industrial and Product Design Projects. Cash payout is also an option in the first three years of this scheme (YA 2011- 2013). Businesses can convert up to $300,000 of their tax deductions at a rate of 7% into a cash payout of up to $21,000 each YA.
What are Approved Industrial and Product Design Projects?	Approved Industrial and Product Design Projects · Must be conducted in Singapore. · Must relate to professional services of creating and developing concepts and specifications that optimise the function, value and appearance of the physical products. It must take into consideration users’ needs, marketability and production that result in the final design of a physical product. Those activities not specified can also be considered if it is a component of the design process or design of the eligible final physical product. · Must result in the creation of new intellectual property (IP) through the Intellectual Property Office of Singapore (IPOS), in the form of a registered design or a patented invention. The applicant must be the sole owner of the IP. · Must be completed within 2 years.
Application Procedures	Businesses must submit an application to DesignSingapore at least two months before the commencement of the design project, subject to the approval of the design project and the eligibility of the designer(s) and/or design service provider(s). In cases where the design project had started or will start before 1 January 2011, businesses can still submit the application mid-project. The application must be made before 1 November 2010, In cases where the design projects had been completed or will complete before 1 November 2010, businesses can submit their application after the completion of the project. They should use the application form entitled “Application Form – Post Project” instead and submit it before 1 January 2011.
Contact Information	For more information, please contact: Hotline : 6333 3737 (Weekdays from 9.30am to 5.30pm)Email : info@designforenterprises.sg Website : www.designsingapore.org

More information on the Productivity and Innovation Credit for Investments in Design is available at http://www.designsingapore.org/Default.asp?Page=340

About DesignSingapore Council

Design changes and improves lives, inspires creativity and new forms of expression. It also enhances business competitiveness in today’s crowded marketplace.

DesignSingapore is Singapore’s response to these propositions and opportunities. As a national initiative, DesignSingapore aims to place Singapore on the world map for design creativity. It looks to developing a thriving, multi-disciplinary design cluster of industries and activities in Singapore that has relevance and impact globally. The initiative also aims to bring design to business boardrooms, new audiences and new markets.

The DesignSingapore Council formed in August 2003 as a department within the Ministry of Information, Communications and the Arts, is the national agency for promotion and development of Singapore design.

The Council is dedicated to enhancing Singapore’s design capabilities and growing the appeal of design in everyday life. This is achieved through design scholarships to nurture Singapore designers, as well as research and development focused on design excellence.

More information on the Council is available at www.designsingapore.org.