22 September 2014
On 19 September 2014, IRAS published the fourth edition of the e-Tax Guide, “Productivity and Innovation Credit (4th Edition)”.
Productivity and Innovation Credit (PIC) was introduced in Budget 2010 for Year of Assessment (YA) 2011 to YA 2015 to encourage productivity and innovation activities in Singapore.
In Budget 2013, an additional cash bonus (known as PIC bonus) was announced as part of a 3-year transition support package under the Quality Growth Programme.
In Budget 2014, the PIC scheme will be extended for three years till YA 2018.
A PIC+ scheme was also introduced to provide support to small and medium enterprises (SMEs) that are making more substantial investments to transform their businesses.
In the fourth edition of the e-Tax Guide, the amendments reflect the extension of PIC for another three years and the introduction of the PIC+ scheme for qualifying SMEs.
Other amendments include the following enhancements to the PIC scheme:
- Cash payout option
– Period for determining 3-local employee condition under the cash payout option extended from one month to three months with effect from YA 2016; and
– Individuals employed under centralised hiring arrangements recognised as employees.
- Training
– Expansion of PIC from YA 2014 to include training expenditure on individuals under centralised hiring arrangements.
- Introduction of measures to curb PIC abuses.
The previous edition of the e-Tax Guide was published on 20 September 2013.
For full details, please refer the e-Tax Guide on the IRAS website.
Source: This article was extracted from the Inland Revenue Authority of Singapore’s (IRAS) website. Visit http://www.iras.gov.sg/ for more information.