Innovation Credit Scheme (PIC) lapse and reduced % for Cash Payout
[ Singapore ] Introduced in Budget 2010, and later enhanced in Budgets 2011, 2012, 2013 and 2014, Singapore government introduced Productivity and Innovation Credit Scheme (PIC) scheme that allow companies to enjoy up to 400% tax deduction or allowances or get a 60% cash pay-outs when they invest in the following 6 qualifying activities;
- Acquisition and Leasing of PIC IT and Automation Equipment
- Training of Employees
- Acquisition and Licensing of Intellectual Property Rights (IPR)
- Registration of Patents, Trademarks, Designs and Plant Varieties
- Research and Development (R&D) Activities
- Design Projects Approved by DesignSingapore Council
In Budget 2016, the government will allow PIC Scheme to lapse and the cash payout rate will be lowered from 60% to 40% for qualifying expenditure incurred from 1 August 2016. All other conditions of the scheme remain unchanged.
To facilitate businesses’ transition to the cash payout rate of 40%, IRAS will be providing guidance by May 2016 on determining the dates that expenditure is incurred for PIC purposes.