Accounting software is a helpful tool to assist businesses to improve their record keeping practices and tax compliance. To encourage businesses to use accounting software, IRAS has partnered Infocomm Development Authority of Singapore (IDA) to provide a subsidy scheme. From 1 Jul 2009 till 31 Mar 2012, GST-registered businesses can apply to IDA for a grant to defray the costs of purchasing accounting software that are listed in the IRAS’ Accounting Software Register.
Scope of the Scheme
GST-registered businesses which qualify under this scheme will receive a subsidy of up to 50%* of the cost of the accounting software and for costs related to installation/deployment and training on use of the software, up to a maximum of S$1,500.
*The subsidy has increased to 70% and capped at S$1,500 w.e.f. 4 Apr 2011 till 31 Mar 2012.
Conditions of the Scheme
Businesses that wish to apply for assistance under this scheme must meet the following conditions:
1. The business is registered or incorporated in Singapore with
a. Local equity/shareholding of at least 30%; AND
b. Group annual sales turnover is less than S$100 million OR staff strength of not more than 200 employees*
2. The business is GST-registered and will remain registered for 12 months or more after submission of the application for the subsidy, subject to the GST legislation.
3. The business is currently not using any accounting software or system, and the business has not applied for, obtained, or will be obtaining any other tax/financial assistance (i.e. subsidy/grant) for software performing the same function.
4. The accounting software must be listed in the IRAS’ Accounting Software Register.
5. The business must email a copy of the IRAS Audit File (IAF) generated by the accounting software which covers data for one GST prescribed accounting period, to IRAS. The IAF must be reviewed and approved by IRAS.
*Group Tracing: All levels up for corporate shareholder(s) holding more than 50% of total shareholding of a company, and all levels down for subsidiary(s) where applicant holds more than 50% of total shareholding. All level up refers to an SME with a parent company which holds more than 50% of the total shareholding of the SME, where the annual sales turnover of the parent company is deemed to be the annual sales turnover of the “Group”. All level down refers to SME which does not have a parent company holding more than 50% of the total shareholding of the SME, where the annual sales turnover of the SME is deemed to be the annual sales turnover of the “Group”.
How to apply
The scheme is effective from 1 Jul 2009 till 31 Mar 2012. Businesses which are interested must fill in the application form, submit to IDA and await IDA’s reply before purchase of the accounting software. For more details of the application process, please refer to IDA