PIC Claim Explanation Video English Version
PIC Claim Explanation Video by Chinese Version (中文)
The PIC grant is administered by Inland Revenue Authority of Singapore (IRAS). Its main objective is to offer considerable tax deduction to small and medium enterprises (SMEs) in Singapore who do investments in several activities that are associated with innovations. When used in a right way, the grant can greatly improve the innovation and productivity in most companies of Singapore.
PIC (Productivity and Innovation Credit) Scheme lets businesses enjoy up to 400% tax deduction or allowances or receive a 40% cash payout when they invest in 6 PIC qualifying activities which include the following:
All Singapore-based businesses that have invested in one of the six PIC Qualifying Activities are qualified for PIC claim.
Minimum 30% Singaporean
shareholding, you need to employ at least 3 local employees with CPF contributions. These employees do not include partners under contract of service, sole proprietors, and shareholders who are also directors of the company. Moreover they should be in employment in each qualifying quarter.
Your company’s yearly revenue should be less than $100 million, Your company should not employ over 200 employees, Your company should have incurred at least $400 in qualifying expenditure, The equipment bought under “Acquisition and Leasing of PIC IT and Automation Equipment” should to be in active use
Under this scheme, businesses can get up to 400% tax deductions/allowances on up to $400,000 of qualifying expenditure per year on any activities that are eligible for this grant. Before applying for this scheme, make sure to calculate the overall tax deduction that you can receive from this scheme. As of YA 2015 to YA 2018, the tax deduction is 400% of the annual expenditure of your company, capped at $600,000 per year. This implies that if the annual expenditure of your company is $500,000, the tax deduction amount will be $2,000,000.
The eligible SMEs can apply to convert up to $100,000 of their total qualifying expenditure into a non-taxable cash payout every year, instead of claiming tax deduction. Businesses can claim up to 40% cash payout from YAs 2011 to 2018. This grant aims to help small and emerging businesses that face financial problems. These businesses with limited financial resources can convert their qualifying expenditure into a cash payout to invest in innovation, technology or upgrade their business operations.
Before submitted application for any of the PIC scheme, it’s important that businesses should know about the basic eligibility criteria and requirements. Any inappropriate information or lack of supporting documents can invalidate your application, keeping you from availing PIC benefits.
To get your PIC claim approved in the first attempt and avoid making the common mistakes, follow the following instructions: