Productivity and Innovation Credit (PIC) Scheme
What is it?
It is a tax benefit scheme that was introduced to encourage companies to engage in innovative and productive activities. Businesses can enjoy huge tax savings in the form of Cash Payout and/or Tax Deduction when they invest in any of the following 6 productivity improvement activities:
- Research & Development Activities
- Acquisition/Leasing of IT and Automation Equipment
- Training of Employees
- Approved Design Projects
- Acquisition of Intellectual Property Rights (IPR)
- Registration of Intellectual Property Rights including patents, trademarks, design and plant varieties
Under the scheme, businesses can enjoy 400% tax deduction or 60% cash payout on their investments in any of the above qualifying activities.
(i) 400% Tax Deduction
Businesses making an investment in any of the above qualifying activities may claim tax deductions of 400% on the amount invested, up to S$400,000 for each activity from their income.
(ii) 60% Cash Payout
Instead of a tax deduction, businesses can opt for a 60% cash payout on up to S$100,000 of investments across all 6 activities.
How does it benefit you?
- It helps you to improve your productivity and innovation.
- It helps you defray rising operating costs such as wages and rentals.
Who is eligible to apply?
- You must have an active business operation in Singapore
- Have at least 3 local employees (Singapore Citizens or Permanent Residents) with CPF contributions, excluding shareholders who are directors of the company
- Have made qualifying expenditure in any of the 6 qualifying activities during the basis period for that YA (year of assessment)
How to apply?
Consult us for professional advice to ensure that your business investment activities qualifies for the PIC benefit. We will provide comprehensive services to assist you through the entire application process.