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Productivity and Innovation Credit+ (PIC)
Scheme
…….. Investing beyond the expenditure cap
for PIC? Claim enhanced tax deduction with PIC+ scheme.
For who?
Sole proprietorships,
partnerships and companies with.
Ø
an annual turnover of not more than S$100M
Ø
employment size of not more than 200 workers
For what?
To provide financial support
to small and medium enterprises that are making
substantive investments to transform their business.
PIC covers spending on 6 business
activities in the following areas:
Ø
research & development (R&D) - including R&D projects
conducted outside Singapore
Ø
registration of intellectual property rights – patents, trademarks,
designs and plant varieties
Ø
acquisition of intellectual property rights (E.g. when a company buys
a patent or copyright for use in its business)
Ø
acquisition or leasing of prescribed automation equipment
Ø
training of employees
Ø
approved design projects
For more details on
each of the 6 activities, please refer to the Summary of
Deductions/Allowances on Qualifying Activities table on the Inland Revenue
Authority of Singapore's (IRAS's) website.
How much?
Companies can get up to 400%
tax deductions or allowances on up to S$600,000 of their expenditure per
year.
The annual expenditure cap of S$600,000 per qualifying activity may
be combined as follows:
|
Year of
Assessment (YA)
|
Expenditure
Cap per Qualifying Activity
|
Tax
Deduction per Qualifying Activity
|
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2013 to 2015
(Combined)
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S$1,400,000*
|
S$5,600,000
(400% x S$1,400,000)
|
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2016 to 2018
(Combined)
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S$1,800,000
|
S$7,200,000
(400% x S$1,800,000)
|
*Applicable if you are carrying on a
trade or business for the relevant YAs. Otherwise the combined cap is
reduced accordingly.
Things to note
The scheme covers expenditure
incurred for YA 2015 to YA 2018.
For more info
PIC+ Scheme by Inland Revenue Authority of Singapore
(IRAS)
How to apply?
You may contact us at Tel: 6220 3306 to find out
more.
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