400% tax deductions/ allowances and/or 60% cash payout for investment in innovation and productivity improvements under the Productivity and Innovation Credit (PIC) scheme. The tax benefits under PIC are available from Years of Assessment (YAs) 2011 to 2018, for investment in any of the six qualifying activities.
From YAs 2013 to 2015, your business can 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.
Find out more about the PIC scheme in the table below.
|What Qualifies for PIC||How PIC Benefits You||How to Claim|
|Invest in Six PIC Qualifying Activities||• Claim in Income Tax Return|
|• PIC Cash Payout: Cash payout on up to $100,000 of expenditure per year||• Submit PIC Cash Payout Application Form and Hire Purchase-Template* Revised! to IRAS
• Applicable if you are claiming cash payout on PIC IT and Automation Equipment acquired under a hire-purchase agreement entered into during the basis period for Years of Assessment 2013 to 2018
|• PIC Bonus||• No Separate Application Required. IRAS will process PIC bonus automatically based on information declared in income tax return or PIC cash payout application form.|
Most Commonly Claimed Activity
What Equipment Qualifies
• Equipment in Prescribed List of PIC IT and Automation Equipment Revised!
• Equipment Approved on Case-by-Case Basis
• Examples of IT and Automation Equipment Qualifying for PIC (By Industry)
• No approval is required
• Submit Application for Approval of Equipment for PIC Form
For more information on PIC, please click here