Productivity and Innovation Credit (PIC)

The PIC Scheme was announced in Budget 2010 to encourage businesses to invest in productivity and innovation. Under this scheme, your company may enjoy enhanced tax deduction of qualifying training expenditure.

Programmes conducted under FOCUS Adventure are qualified for the PIC

Here we will tell you how your business can enjoy 400% tax deductions/ allowances and/or 60% cash payout for investment in innovation and productivity improvements under the Productivity and Innovation Credit (PIC) scheme.  The tax benefits under PIC are available from Years of Assessment (YAs) 2011 to 2015, on investment in any of the following

Six Qualifying Activities:

1. Acquisition and leasing of PIC Information Technology (IT) and Automation Equipment;
2. Training of employees;
3. Acquisition and In-licensing of Intellectual Property Rights;
4. Registration of patents, trademarks, designs and plant varieties;
5. Research and development activities; and
6. Design projects approved by DesignSingapore Council.

From YAs 2013 to 2015, your business may also enjoy a PIC Bonus, a dollar-for-dollar matching cash bonus given on top of the existing 400% tax deductions/ allowances and/or 60% cash payout.

Overview of Productivity and Innovation Credit (PIC Scheme)

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Find out more about the PIC scheme in the table below.

What Qualifies for PIC How PIC Benefits You How to Claim
Invest in Six PIC Qualifying Activities 400% Tax Deductions Claim in Income Tax Return
Cash Payout Option Submit PIC Cash Payout Form to IRAS
PIC Bonus No Separate Application Required. Claim together in the Income Tax Return or PIC Cash Payout Application

 

Most Commonly Claimed Activity What Equipment Qualifies How to Apply
IT and Automation Equipment Equipment in Prescribed List of PIC IT and Automation Equipment No approval is required
Equipment Approved on Case-by-Case Basis Submit Application for Approval of Equipment for PIC Form
Examples of IT and Automation Equipment Qualifying for PIC (By Industry)

 

For more information, please click here to visit IRAS website.