government assistance for smes - cpa australia · government assistance for smes ... each financial...
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SMECENTRE @ ASME
Globalise Grow
Go
Enterprise Development Centre
• Initiative of SPRING Singapore • EDC@ASME is the first EDC established in Singapore in
2005 • To date, 5 Enterprise Development Centres (EDC) have
been set up • Reaches out to SMEs, as well as aspiring entrepreneurs • First level Business Advisory at NO charge
Government Assistance Available
• More than 170 assistance schemes from the
government (SPRING Singapore, ieSingapore,
WDA, MDA, MOM, MCYS etc.)
SMECENTRE @ ASME
Globalise Grow
Go
• Information Access and assistance on various government schemes
• Basic Advisory & customized consultancy on business Needs
• Workshops and Training on work-related knowledge and competencies
• Events on latest issues, opportunities and networking with potential partners
• National Initiatives on re-employment of older workers • Business Clinic - Legal, branding and finance • Biz+ Packages - Branding, design, registration of company
SMEs in Singapore
SMEs play a vital role towards
Singapore’s economic growth
Annual turnover of not more than S$100
million
Who are SMEs
An employee headcount of no more than 200
Approximately 60% of labour force hired by
SMEs, and SMEs account for over
90% of all enterprises
SMEs reach
Approximately 160,000 SMEs in
total contributing ~ 50% of
Singapore’s GDP
OR
Productivity and Innovation Credit (IRAS)
Invest in activities to improve
Innovation and Productivity
6
Tax Deduction
Cash Payout
With Effect
YA2013-YA2015
400% tax deduction
Up to
$400,000 expenditure per
year
6 qualifying areas
60% cash payout ratio
Up to
$100,000 expenditure per
year
Convert after
each financial
quarter (from July 2012)
Automation
Acquire IP
Rights
Register IP
Rights
Training
R&D
Design
PIC - Example: If you spend $10,000 on employee training
*Based on prevailing corporate tax rate of 17%
7
Without PIC
$10,000
Tax
Deduction
$10,000
Tax
Savings*
$1,700
Conversion
Rate
60%
Cash
Payout
$6,000
$10,000
With PIC
OR
$10,000
Tax
Deduction
$40,000
Tax
Savings*
$6,800
Tax Deduction Cash Payout
PIC BONUS
• 15k bonus from 2013-2015 YA
• Dollar for dollar for PIC expenditure
• Minimum 5k expenditure to qualify
• Automatic disbursement
• Taxable income
PIC example 1
Spend 10k on IT equipment
Claim PIC cash- 60% of 10k= 6k
PIC bonus reimbursement = 10k
-10k+6k+10k= 6k
Cash incentive of 6k
PIC example 2
IT implementation cost-100k
•Implementation cost of 80k
•Training cost of 20k
PIC claim:
60% of 80k under automation category
60% of 20k under training
PIC bonus of 15k
Tax Deduction Cash Payout
Spend
File
Tax
Return
Receive
Tax Bill
Sole
Proprietors/
Partnerships
must submit
Declaration
Form
Spend
Submit
Cash
Payout
Form
Cash
Back
11
PIC - Application
• Reimbursement of 40% of wage increment
• Employees must earn a salary of less than 4k
• Employees must work minimum 3 months in the current company
• Employees must be a singapore citizen
• Minimum increment of $50
Wage Credit Scheme
Enterprise Training Support (ETS) scheme aims to:
• Raise your employees’ productivity and skills levels
• Attract and retain valued employees by developing good Human Resource (HR) and management systems and practices tied to training
• Attract and retain valued employees by helping you benchmark compensation and benefits to market rates
WDA Enterprise Training Support
• Training Grant Up to $200,000 per company. Supports the cost of non-WSQ training and structured OJT, with bundled WSQ training forming at least 30% of an enterprise training plan.
•Capability Development Grant One-time grant of $20,000 per company Helps you build your in-house capabilities in the areas of training delivery and infrastructure.
WDA Enterprise Training Support
• Curriculum Contextualisation and Alignment Grant Up to $52,000 per company to defray costs in developing (WSQ) training modules. The grant will also support development of OJT blueprints.
•Compensation and Benefits System Review Grant Up to $15,000 per company to defray costs of engaging consultancy agencies to conduct enterprise-wide industry salary benchmark reviews and restructuring of wages, to attract and retain local talent in a tight labour market.
WDA Enterprise Training Support
HR Development Grant Up to $60,000 per company Helps you:
• Develop a system to administer and monitor a holistic training plan which would include identifying skills needed of your employees and developing training pathways; or
• Integrate WSQ into your training plans and HR policy; or
• Enhance existing or develop new learning and development systems to support adoption of WSQ and measure learning gains; or
• Develop career progression pathways, tied to the training roadmap with WSQ components
WDA Enterprise Training Support
• WorkPro is a new scheme jointly developed by MOM and WDA to augment local manpower, foster progressive workplaces and strengthen the Singapore core
• Workpro is open to all singapore registered companies and employees must be singapore citizens or PRs.
WDA Work-pro Scheme
WorkPro consists of 2 major categories:
•WorkPro for employers: -Age management Grant
-Job Redesign Grant
-Work-life Grant
-New Hire and Retention Incentives
On-the-job ( OJT ) training allowance
•WorkPro for employees: -Job Preparation support
-Retention bonus
Work-pro Scheme
• It is a grant to help employers acquire skills and knowledge on age management practices
- re-employment practices
- Performance management
- Job redesign
• Encourages employers to take the first step to implement these practices
Age Management Grant
• 20k grant per company disbursed in 2 tranches
• First tranch of 5k - Align re-employment policy to tripartite guidelines
- List of staff aged 40 and above: minimum 5
- Offer eligible employees re-employment in line with tripartite guidelines
- 1 supervisory staff to attend job redesign and process improvement course
- HR staff to attend 1 day age mangement course
Age Management Grant
• Second tranch of 15k
- Sign the TAFEP fair employment practices pledge
- Organise at least 1 health programme for mature employees
- Adopt any 2 age management practices
Age Management Grant
• Supports cost of redesigning jobs to recruit and retain mature workers, economically inactive persons, and those who have been out of work for 3 months or more.
• Maximum of 300k per company:
- 150k for mature workers
- 150k for economically inactive workers and workers out of work for 3 months and more.
Job Redesign Grant
• Supports up to 80% of costs
• Supported costs:
- Equipment for automation
- Consultancy cost
- Hr policy and systems costs
- Training costs
- Recruitment advertising costs
Job Redesign Grant
• Provides support for implementation of work-life strategies for better work-life harmony.
• Consists of 2 components:
- Develpmental Grant
- Flexible Work Arrangement (FWA ) Incentive
Work-Life Grant
• Developmental Grant
- 1 time grant up to 40k
- Co-funds up to 80% items like work-life training, work-life consultancy, personal work-life effectiveness
- Co-funds up to 30% for IT infrastructure for FWAs
Work-Life Grant
• FWA Incentive
- Up to 120k per organisation disbursed in 3 tranches of 40k each over 3 years
- 10k for first 5 singaporean employees
- $1500 for each additional singaporean ( 6th employee onwards )
Work-Life Grant
• Assist companies to retain newly hired workers
• Max 50k per company
• Must have tapped either age management grant, work-life grant or job redesign grant
New Hire Retention Incentive
• Employers will receive incentive of 50% of employees 1 month salary if contracted on a permanent or contract positions retained for 6 months
• Additional 50% of 1 month salary for employes retained for 12 months
• Paid to employers in the 6th and 12th month mark
New Hire Retention Incentive
• Encourages employers to conduct OJT for newly hired workers
• Max 50k per company
• For newly hired workers who have been out of work for 3 months or more, and economically inactive persons.
On Job Training Allowance
InfoComm Adoption- ISPRINT (IDA) Types of Project Qualifying Costs Examples
Packaged solutions Up to 70% (capped $2000) of Software/ subscription cost, Consultancy services, Training cost
Finance/ Accounting Payroll Point-of-Sales Software-as-a-Service
Customised solutions Up to 70% (capped $20000) of Consultancy services, Training cost
Customer relationship management, enterprise resource planning
Customised solutions that require extensive development efforts and business re-engineering
Up to 70% of Manpower-related costs Consultancy services Hardware/ software costs (amortised), Training cost
Supply chain management
• OJT allowance for employers equivalent to 1 month salary capped at 2k for workers hired on a permanent or contract positions
• Disbursements will be made 6 months after signing the letter of offer with SNEF or NTUC.
On Job Training Allowance
Capability Development Grant
The Capability Development Grant (CDG) is a financial assistance programme aimed at helping Small and Medium Enterprises (SMEs) defray up to 70% of qualifying project costs*, relating to consultancy, manpower, training, certification, upgrading productivity and developing business capabilities for process improvement, product development and market access.
Capability Development Grant
• Brand Development
• Business Innovation & Design
• Business Strategy Development
• Enhancing Quality & Standards
• Financial Management Human Capital Development
• Intellectual Property & Franchising
• Productivity Improvement
• Service Excellence
• Technology Innovation
Inclusive growth programme
• To assist companies improve their productivity through automation and IT implementation
• Max of 500k per company, 150k per company
• Up to 50% of project costs
• Workers affected must earn less than 1700 per month
• Help improve value of lower wage workers
Micro Loan Scheme
• It is a partnership between banks and the Government
• Provides more affordable loans to SMEs with less than 10 employees
• Interest rate as low as 2.8%
• Up to 100k
Risk Management Assistance Fund
• Helps companies achieve Bizsafe certification up till level 3
• Covers up to 90% of costs to achieve Bizsafe level 3
• Workplace safety act in place since september 2011
Innovation & Capability Voucher
Replaces Innovation Voucher Scheme
Covers 4 categories: Innovation, Productivity, Human resource and Financial management
Each voucher is worth $5k
Entitled to 2 vouchers per category
For More Information
• Visit EnterpriseOne website http://www.enterpriseone.gov.sg
• Visit our website www.smecentre-asme.sg
• Call 6513 0388
• Email [email protected]
• Contact any of our Business Advisors directly