Productivity and Innovation Credit Scheme, in short named as PIC. This had been introduced in Budget 2010 for Year of Assessment (“YA”) 2011 to YA 2015 to encourage productivity and innovation activities in Singapore local Company. As announced in Budget 2014, the scheme is extended for three years till YA 2018.
Six major activities which qualified under this Government grant are as below,
- Acquisition or leasing of PIC information technology (“IT”)3 and automation equipment (“qualifying equipment”);
- Acquisition or licensing4 of intellectual property rights (“IPRs”);
- Registration of certain IPRs;
- Research and development (“R&D”);
- Training;
Local registered companies which invest their money on the above six activities are entitle to get cash rebate up to 40% of the total amount spend. For IT equipment, maximum expenditure claimable is up to SGD100,000 only. For others activities, maximum expenditure claimable is up to SGD400,000 only. Company may have a choice to opt for cash rebate, or tax rebate (up to 4 times of maximum cash spent) in that fiscal year.
Some qualifying criteria for PIC claim during qualify periods are,
- Company must have a minimum hiring of 3 local staff with CPF contribution during claim periods
- Company must be operative during the claim periods
- The amount of claim must not exceed maximum limit of the claim periods
- Sufficient evidence/proof of all the transactions incurred
As IRAS has been refining this benefit from time to time as well as the qualifying factors, the claiming process may become challenging if you do not have the up-to-date information and filing process in hands. Where request, Singapore Accounting and Business Services can assist your company in getting this handsome rebate.
Our Services
- Assess and validate your claim for PIC submission
- Assign a qualified consultant to gather, check and verify all document before submission
- File/submit PIC claim online
- Inform on the approval status