Productivity and Innovation Credit (PIC)

Productivity and Innovation Credit (PIC)

An initiative by the Singapore Government

Year 2013 - 2015 (Past)

The PIC Bonus was introduced to encourage businesses to take advantage of the main PIC scheme, launched in 2010, which offers substantial enhanced tax deductions or cash payouts on qualifying activities. The PIC Bonus scheme gave businesses a dollar-for-dollar matching cash bonus for year of assesment 2013 to 2015, subject to an overall cap of $15,000 for all 3 YAs combined.

Year 2015 - 2018 (Present)

However, the main PIC scheme has been extended by three years to 2018 to benefit Small and Medium Enterprises (SMEs) who require more time to make investment in enterpries productivity. Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said in his Budget Statement in the month of February, 2015. 

The PIC Grant strive to encourage more companies to adopt the PIC scheme by investing in innovation and productivity. Businesses that spend for a minimum amount of $400 in PIC activities in a year will get to receive 60% of the cost in cash rebate from IRAS PIC or 400% tax deduction.

Eligibility

All businesses, including sole proprietorships, partnerships, companies, registered branches and subsidiaries of a foreign parent or holding company, are eligible for PIC.

Qualifying Conditions for Grant

Tax Deductions/ Allowances
  • Carries on active business operations in Singapore.
  • Incurred qualifying expenditure and are entitled to PIC during the basis period of qualifying YA.
Cash Payout
  • Carries on active business operations in Singapore.
  • Incurred qualifying expenditure and are entitled to PIC during the basis period of qualifying YA.
  • Meets the three-local-employee condition.
  • Minimum qualifying expenditure for each cash payout option application is $400.

 

How does PIC benefit your company?

PIC-Tax-Deduction

PIC-Tax-Deduction

 

PIC-cash-payout

PIC-cash-payout

  • Option to convert up to $100,000 of total spending in all six activities for each YA into a non-taxable cash payout, in lieu of the tax deduction/allowance.
  • For YAs 2013 to 2018, the cash payout rate is 60% of qualifying expenditure incurred.
  • For more details, please refer to How PIC Benefits You.

For full details on PIC Claim, please refer to IRAS PIC site.

 

Useful information

IRAS website: www.iras.gov.sg
Hotline: 1800 356 8622
Operating hours: Monday – Friday, 8am – 5pm

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