IRAS updates website FAQs on PIC+ Scheme

28 October 2015

The PIC+ Scheme, introduced in Budget 2014, is available to qualifying small and medium enterprises (SMEs) which incur qualifying expenditure beyond the combined caps of S$1.4 mil and S$1.8 mil applicable for the relevant three years of assessment (YAs) from YA 2013 to YA 2015, and YA 2016 to YA 2018 respectively. (The combined expenditure cap of $1.4 mil is only applicable for YA 2015.)

Under the PIC+ scheme, the expenditure cap will be increased from S$400,000 to S$600,000 per qualifying activity per YA. This means that, from YA 2015 to YA 2018, qualifying SMEs that invest in the six qualifying activities under the PIC scheme can claim 400% tax deductions/allowances on an additional S$200,000 in qualifying expenditure for each qualifying activity per YA.

The lnland Revenue Authority of Singapore (IRAS) has revised its online FAQ to provide clarification that despite a business being unable to utilise the PIC+ benefits in the assessment year that it did not incur qualifying expenditure in excess of the normal PIC cap, it will still be eligible to enjoy the benefits in the subsequent YAs.

The revision was made on 12 October 2015.

Source: IRAS