PIC Bonus Scheme: The productivity booster for small and medium business

Last updated on November 15th, 2017 at 04:01 pm

PIC was first introduced in Budget 2010 and enhanced in Budgets 2011, 2012 and 2013.

The new PIC Bonus scheme introduced in Budget 2013 gives businesses that spend at least S$5,000 per year in qualifying activities a dollar-for-dollar matching cash bonus, capped at S$15,000 (over the three years from YA 2013 to YA 2015). This is given on top of the existing 400% Tax Deduction and Cash Payout benefits. In addition, the scope of the scheme has been enhanced to include IP In-licensing and a wider variety of automation equipment as qualifying activities. The full list of qualified activities can be found on  IRAS website.

The enhanced PIC Bonus scheme is aimed to encourage businesses to invest in productivity and innovation with the objective of attaining long-term sustainable productivity-driven growth.

Who Qualifies for PIC Bonus and PIC Cash Payout

  • Business that have spent a minimum of $5,000 in PIC qualifying activity in a YA
  • Business must carry on active business operations in Singapore
  • Business that made CPF contributions for at least 3 local employees (Singaporean or Singapore PR) excluding sole proprietors, partners, and shareholders who are directors of the company

How to Claim

The new PIC Bonus Scheme can be claimed in the Income Tax Return along with the Tax Deduction and Cash Payout benefits. For more information please visit the Productivity and Innovation Credit Scheme (PIC) section of the IRAS website.

 

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