The guide details how business entities registered in Singapore can enjoy a 400% tax deductions/ allowances and/or 60% cash payouts for investment in innovation and productivity improvements in any of the six qualifying activities. The tax benefits under PIC are available from years 2011 to 2018. Additionally, from years 2013 to 2015, businesses can also benefit from a PIC Bonus, which is a dollar-for-dollar matching bonus given on top of the existing tax deductions/ allowances and/or the cash payout.
PIC Scheme in Singapore
Introduced in Budget 2010, and later enhanced in Budgets 2011, 2012, 2013 and 2014, the PIC scheme encourages businesses to get significant tax deductions or payouts for investments in research and development, innovation, automation and training.
Who is Eligible for the Productivity and Innovation Credit (PIC) Scheme?
In general, all Singapore-registered business entities are eligible for the PIC scheme.
However, to be eligible for the cash payout option, the entity must have at least 3 regular employees with CPF contributions. Such employees do not include sole proprietors, partners under contract of service, and shareholders who are also directors of the company.
Read more about Singapore’s Productivity and Innovation Credit (PIC) Scheme at Singapore Company Incorporation.
