Productivity and Innovation Credit (PIC Scheme)

Under the Productivity and Innovation Credit (PIC) scheme, businesses can benefit in the form of a 60% Cash Payout and/or a 400% Tax Deduction when they invest in qualifying activities. Maximum $60,000 cash payout per year.

Businesses  will also receive an equal amount in PIC bonus for every dollar spent on qualifying activities, subject to the cap of $15,000  over the 3-year period from YAs 2013 to 2015

Please view this illustration below :

Our Mobile App Platform and Email Marketing Automation Platform are SAAS (Software as a Service) IT Automation solution that are PIC Eligible. Training on these productivity tools are also PIC Eligible.

The tax benefits under PIC are available from Years of Assessment (YAs) 2011 to 2015, on investment in any of the six qualifying activities.

From YAs 2013 to 2015, your business may also enjoy a PIC Bonus, a dollar-for-dollar matching cash bonus given on top of the existing 400% tax deductions/ allowances and/or 60% cash payout.

For more details visit : IRAS PIC Webpage  or Enterprise One PIC Page

Should you need further assistance on PIC Claims. We will provide recommendations to engage a PIC Consultant.

 

What is the criteria for the PIC Cash Payout?

1.3 CPF Paying Staff (Non Shareholders) during the last month of financial period
2.Operating Business in Singapore
3.Expenditure must be in the 6 supported areas of which the mobile app falls under:  Prescribed Automation Equipment
4.PIC Cash Bonus is only applicable when you are claiming more than $5,000 in total for that period

 

How much payout do I get?

You can only claim the amount you have paid up for the period you are claiming for.
E.g.
You have purchased a mobile app software subscription for $199 per month for 12 months. The setup fee is $1500.
Before PIC
$199 x 12 months = $2388 + setup of $1500 = $3888. 
Total Amount Paid = $3888
After PIC (60%)
60% cash rebate of $3888 = $2332.80
Total Net Amount Paid = $1555.20
If you qualify for the PIC Cash Bonus, you will receive an additional 1-1 cash rebate of $3888, which means you will get back $2332.80 in cash.
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