IRAS updates website content relating to Productivity and Innovation Credit (“PIC”) Cash Payout

8 May 2014

Phasing out the Excel PIC Cash Payout Application Form

The Inland Revenue Authority of Singapore (“IRAS”) will be phasing out the Excel PIC Cash Payout Application Form (Form 33000, Annex A1 and Annex A2). From 1 May 2014, all PIC Cash Payout applications must be made using the new Online PIC Cash Payout Application Form.

The new Online PIC Cash Payout Application Form includes validation checks to minimise errors in form completion and ensure that all relevant information is provided. It also has an iHelp facility to provide guidance on how to complete up the form.

The change is part of the IRAS’s efforts to streamline the application process, and to align with the changes to the PIC scheme as announced in Budget 2014. It will also facilitate faster processing of the application forms as it minimises the need for IRAS to seek clarification on the application forms. In turn, this will allow the claimants to receive the cash payout more quickly.

During the three month transition period from 1 May to 31 July 2014, the IRAS will continue to process PIC Cash Payout applications made using the old excel form. From 1 August 2014, only the Online PIC Cash Payout Application Form will be accepted.

Frequently Asked Questions (“FAQs”) on Cash Payout Option under the PIC Scheme

On 21 April 2014, the IRAS updated its website content to include the following:

  • If a company was granted a waiver of income tax return (Form C/Form C-S) submission by IRAS but has re-commenced business and would like to apply for cash payout, it is required to notify IRAS immediately that it has re-commenced business by completing and submitting the form “Request for Income Tax Return (Form C/Form C-S) and Notification of New Accounting Year-End”, together with the PIC cash payout application form to avoid any delay in the processing of the cash payout. Under sec 94A of the Income Tax Act, failure to give notice of chargeability is an offence (refer to Question 6 of the FAQs).
  • If a business does not meet the qualifying condition of having three local employees during the relevant financial period for Year of Assessment (“YA”) 2013 for PIC cash payout, it cannot make the claim for the YA 2013 incurred expenditure in subsequent YAs when it meets the qualifying conditions (refer to Question 7 of the FAQs).
  • If a business has made a claim and received cash payout for qualifying expenditure (on, for example, Items 1 and 2) incurred in a financial quarter, but has omitted to make a claim for a qualifying expenditure (on, for example, item 3) for the same quarter, it can re-submit the cash payout application for the same quarter. In the form, the business should only include claims for the new item (i.e. Item 3), and not Items 1 and 2, which were previously approved. In the event of duplicate claims, penalties may be imposed.

Alternatively, the business can include the claim for Item 3 together with its claim for a subsequent quarter in the same financial year, provided that it has met the three-local-employees condition for that subsequent quarter.

For more information, please refer to the IRAS website.

Source: Inland Revenue Authority of Singapore