What is PIC?
The Productivity and Innovation Credit (“PIC”) was implemented in the Singapore Budget 2010 and has been extended for anther three years until 2018. The PIC scheme supports investments in Innovation and Productivity. Businessess can enjoy tax savings in the form of Cash Payout and/or Tax Deduction, and received a PIC Bonus when they invest in any of the six productivity improvement activities.
What are the six productivity improvement activities?
- Acquisition and Leasing of PIC IT and Automation Equipment
- Investment in Design Projects Approved by the DesignSingapore Council
- Training of Employees
- Research and Development Activities
- Registration of Patents, Trademarks, Designs and Plant Varieties
- Acquisition and In-licensing of Intellectual Property Rights
How does PIC benefit you?
|PIC Scheme||PIC+ Scheme||PIC Cash Payout||PIC Bonus|
|400% Tax Deductions on up to $400,000 of expenditure per year||400% Tax Deductions on up to $600,000 of expenditure per year from Year of Assessment 2015 to 2018||Cash payout on up to $100,000 of expenditure per year||A dollar-for-dollar matching cash bonus for Year of Assessment 2013 to 2015. Capped at $15,000 over all 3 YAs combined|
Does my business qualify for PIC?
For tax deduction, any local registered business with operations in Singapore is qualified.
For cash payout, businesses with sole-proprietorships, partnerships, companies (including registered business trusts) that have:
- incurred qualifying expenditure and are entitled to PIC during the basis period for the qualifying YA;
- active business operations in Singapore; and
- at least three local employees (Singapore Citizens or Singapore Permanent Residents with CPF contributions) excluding shareholders who are directors of the company.
Is ERP system qualified for PIC?
ERP system is qualified under the Acquisition or Leasing of PIC Automation Equipment List.
No approval is required
Is Website Development qualified for PIC?
Website development is qualified under theAcquisition or Leasing of PIC Automation Equipment List
from YA 2014 to YA 2018. The cost Website development cost including the costs incurred for the one-time registration of a domain name for the website, will qualify for PIC from YA 2014 to YA 2018. (PIC Grant Consultation)
How do I claim?
|How to Claim||When to Submit|
|Tax Deduction||Claim tax deduction in your Income Tax Return (Form C/Form C-S)||By the filing due date of 30 November or 15 December (if you e-File Form C-S)|
|Cash Payout||Submit PIC Cash Payout Application Form||Anytime after the end of your financial quarter(s), but not later than the filing due date of the Income Tax Return (Form C/Form C-S)|
Where can I find more information?
Refer to the IRASwebsite