Productivity and Innovations Credit

What is PIC ?

The Productivity and Innovation Credit (“PIC”) was introduced in the Singapore Budget 2010. PIC has been enhanced in Budget 2011 to provide tax benefits for investments by businesses in a broad range of activities along the innovation value chain. The tax benefits under PIC will be effective from Years of Assessment (YA) 2011 to YA 2015.

What do i get it ?

Eligible businesses can enjoy 400% tax deductions/ allowances (up to $400,000 per activity) and/or 60% cash payout (up to $100,000 for all activities). The tax benefits under PIC are available from Years of Assessment (YAs) 2011 to 2015.

Is my business eligible for PIC grant?

For tax deduction, any local registered business with operations in Singapore is eligible.

For cash payout, businesses eligible to apply for the cash payout are 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 3 local employees (Singapore citizens or Singapore permanent residents with CPF contributions) excluding sole-proprietors, partners under contract for service and shareholders who are directors of the company.
    • A business is considered to have met the 3-local-employees condition if it contributes CPF on the payroll of at least 3 local employees in the relevant month
      .

Does this ERP system qualify for PIC grant?

Yes ERP systems are qualified under the Acquisition or leasing of PIC Automation Equipment list. No approval is required

When does this end?

Years of Assessment (YAs) 2015 for accounting year 2014.

How do I claim?

If tax deduction is selected, it is claim in Income Tax Return. Sole-proprietors and partnerships also have to submit the PIC Enhanced Allowances/Deduction Declaration Form for Sole-Proprietors and Partnerships together with their income tax returns.

If cash payout is selected, submit PIC Cash Payout Form to IRAS at the end of your financial quarter.

When will I get the benefits?

For tax deductions it is computed by IRAS after filing income tax returns.
For cash payout, the payout will generally be made by IRAS within three months of receipt of the application form and relevant annexes if the information is complete.

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If the information is not sufficient to help you to understand the grants, please fill the form. We will get back to you within 2 working days.

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