Changes in PIC wef 1 August 2016 – cash payout rate and compulsory e-filing of applications

On By taxsgIn Corporate Tax, Latest Tax News, Reminders

26 July 2016

The Inland Revenue Authority of Singapore (IRAS) has issued a reminder on its website on the change in cash payout rate of the Productivity and Innovation Credit (PIC) scheme, as well as on the removal of hardcopy filing of the cash payout applications.

With effect from 1 August 2016, the Productivity and Innovation Credit (PIC) cash payout rate will be at 40% instead of 60% of qualifying expenditure subject to a total expenditure cap of $100,000 across the six qualifying activities.

For PIC-qualifying expenditure incurred before 1 August 2016, the 60% cash payout rate will still apply regardless of PIC cash payout applications submitted on or after 1 August 2016.

Further from 1 August 2016, IRAS will only accept e-filing of cash payout applications.

The e-filing deadlines for YA 2017 PIC cash payout applications are:

  • Sole-proprietors and partnerships – by 18 April 2017
  • Companies –15 December 2017

For further details, please refer to the IRAS website.

Source: IRAS