PIC-Claim-1

PIC Grant: 40% Cash Back
FOR: Web Design, CRM, Mobile Application,
E-commerce, POS System & CMS

PIC Claim

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:

Who is Eligible for PIC Scheme?

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

PIC Grant – 6 Qualifying Activities

Acquisition and Leasing of PIC IT and Automation Equipment

Purchasing and leasing of computers, software and photocopiers, and outsourcing for company’s website and mobile app development.

Training of Employees

Cost incurred on training company’s employees, both in-house and externally.

• Acquisition and Licensing of Intellectual Property Rights (IPR)

Cost incurred to buy a patented technology or payments made for copyrighted materials.

Registration of Patents, Trademarks, Designs and Plant Varieties

Price paid to the Intellectual Property Office of Singapore (IPOS) to register your company’s product/technology trademark.

Research and Development (R&D) Activities

Cost incurred to pay R&D personnel and R&D institute for creating a new, innovative product.

Design Projects Approved by DesignSingapore Council

Cost incurred to employ in-house or outsourced designers to carry out design activities, which will result in a physical product.

CDG Grant Program

What can I do with CDG Grant Program?

PIC GRANT
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 40% of the cost in cash rebate from IRAS PIC or 400% tax deduction.

PIC CLAIM FOR BUSINESS

Traditional Business without website presence are losing to other company that got their own website.

Have you ever thought that by spending SGD $1000.00 ($1500 covered byPIC Scheme), you can actually gain customers for your business through the internet. With your Business up on the Internet, you can print your web address to your name card and keep your customer updated through the internet on your recent promotions, events and products. We are the expert for creating and maintaining Websites that rank well in Google Singapore.

We are ranked for more than 10 keywords on Page 1 for Google Singapore, we can do the same for your business considering that there are thousands of Singapore Business or Consumer searching for search terms related to your business every month based on detailed reports from Google.

It is a fair good return of investment for building a website with us, keeping your business running 24/7 to provide information or perform transaction to people interested in the service or product your business provides.

Can I Claim PIC For Website Design and Development?

Yes, you can apply for PIC grant for website design and development depending on what the expenditure involves. A website development process involves designing, acquisition of software and IT that fall under the six areas where IRAS grants PIC benefits. If you want to revamp the existing website, it is also possible as it involves a lot of upgrading and other resources that need to be purchased. The process also involves training IT staff such as allocated administrators. You can also claim for an Ecommerce store and make money online from your very own shop. All these kinds of investments fall under “Acquisition and leasing of PIC IT and Automation Equipment”. Therefore, you can claim PIC grant for website design and development and receive bonuses. However, make sure that your plan and requirements satisfy the fundamental qualifications as required by IRAS for granting the benefits.

The information given on this site is entirely for educational purpose. To get full details on PIC Grant, please visit the official Iras PIC website.

WHAT TO NOTE WHEN APPLYING FOR PIC CASH PAYOUT?
  • Once the qualifying expenditure is converted to cash, it cannot be claimed as tax deductions/allowances.
  • Election to convert qualifying expenditure to cash is irrevocable.
  • The minimum qualifying expenditure for each application is $400.
  • Qualifying expenditure to be converted to cash is the amount net of grant or subsidy by the Government or any statutory board, and includes grant or subsidy pending approval.

Understanding PIC Grant Options Available

Tax Deductions/ Allowances

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.

Cash Payout

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.

Common Mistakes to Avoid when Submitting a PIC Claim

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:

  • Don’t submit the PIC application form for cash payout with incomplete information. The forms should be completely filled with the appropriate information and duly signed by the authorized persons. Leaving blank spaces or not signing the forms will invalidate your forms.
  • Don’t claim for both 400% tax deduction and PIC cash payout schemes on a single expenditure. For example, if you are submitting PIC cash payout claim on the training expenditure of $20,000, you can’t claim for 400% tax deduction for the same expense.
  • You can claim the PIC grant only for the qualifying expenditure. There are certain expenditures that do not qualify for PIC grants. For example, some equipment does not fall under “Acquisition and Leasing of PIC IT and Automation Equipment”. Therefore, prior to submitting a claim, you need to know about the qualifying equipment.
  • You must have sufficient records and evidence to support your claims. For example, you must have evidence of payment such as an invoice, bank statement, or even CPF payment records. These documents help IRAS avoid fraudulent claims and abusers of the scheme. Additionally, businesses are required to have their financial statements for at least 5 years to validate their claims before submitting an application. When there is no supporting record or evidence to support your application data, your claim will be forfeited and you will not receive any PIC benefit.