IRAS’ Productivity and Innovation Credit (PIC) Scheme is a further incentive to make your companies do more. Businesses can enjoy up to 400% tax deductions/allowances and/or 60% cash for investing in innovation and productivity improvements. These benefits are available from Years of Assessment 2011 to 2015 as long you’re company qualifies in any of the six activities.
400 percent
Directly affecting your business operations is the productivity of everyone involved in the business. In the grand scheme of things, if productivity is low, you’re wasting limited time resulting in unused potential. On the other hand, innovation can lead to exponential growth. Being the first in a given field can give you so much advantage. Besides having a head start in the market, you can use the product of your innovation as a marketing ace to boost your company’s presence. ACP’s Moodle Training and Moodle Learning Management Services can help with your company’s productivity enhancement.

There’s also Cash bonus for Years of Assessment 2013-2015 that can reach up to $15,000. This is on top of the deduction and/or allowances and the cash payout. At least $5,000 much be incurred during the period.
Below are the activities covered under PIC:

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

One of the most developed activities is IT and Automation Equipment. There is no approval needed if you get the prescribed items from IRAS’ list such as automatic equipment used for assembly and testing operations or computer-aided design system software and computer-aided manufacturing system software. Approval can also be acquired through a case-by-case basis through PIC application.

Businesses eligible for the PIC Bonus are sole-proprietorships, partnerships and companies that have incurred at least USD5,000 in PIC-qualifying expenditure during the basis period for the assessment year in which a PIC Bonus is claimed; have active business operations in Singapore; and have at least three local employees (Singapore citizens or Singapore permanent residents with pension fund contributions), excluding the sole-proprietors, partners under contract for service and shareholders who are directors of the company.
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