PIC Scheme
The Productivity and Innovation Credit Scheme supports all businesses who invest in innovation and productivity. Businesses can enjoy huge tax savings in the form of Cash Payout and/or Tax Deduction.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
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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)