Productivity & Innovation Credit (PIC)
Enkindle Corporate Services provides:
- Advise on compliance and application of PIC claims. Our fees are transparent and down right honest. We do not inflate our fees. Please refer to "Service Fees" for details.
What is Productivity and Innovation Credit (PIC) Scheme?
It is a business incentive announced by the Singapore Government in 2011 for SMEs to get significant tax deductions or cash payouts for your investments in many areas such as Research & Development, External Training, Trademark, Intellectual Property, IT and Automation Equipment. It encourages SMEs in Singapore to increase productivity and innovation to improve business operations and therefore reduce employee costs.
From YA 2015 to YA 2018, qualifying SMEs can enjoy 400% tax deductions/allowance in expenditure of up to $600,000 per qualifying activity per Year of Assessment (YA). With the total expenditure cap set at $1.8 million.
PIC Cash Payout:
The expenditure cap for PIC cash payout will remain at $100,000 of qualifying expenditure per YA.
PIC cash Bonus:
From YA 2013 to YA 2015, PIC bonus will give you 100% cash back of up to $15,000 of your qualifying expenditures.
To be eligible for the PIC bonus, businesses must have:
- incurred at least $5,000 in PIC-qualifying expenditure during the basis period for the YA in which a PIC Bonus is claimed
- have employed at least 3 local employees (Singapore Citizens or Permanent Residents with CPF contributions, excluding shareholders who are directors of the company)
- active business operations in Singapore
Please see the following Brochures for details on PIC: