20 July 2017
The Productivity and Innovation Credit (PIC) scheme will lapse after YA 2018, as announced during Budget 2016. Businesses may still choose to receive cash payout on qualifying expenditures incurred during the basis period of YA 2018.
Here are three important details:
- Expenditure incurred after the basis period of YA 2018 will not be eligible for PIC benefits. For example, a company with a financial year end of 31 December must incur the qualifying expenditure by 31 December 2017 in order to qualify for the PIC benefits.
- Eligibility for PIC cash payout is determined based on the date when the expenditure is incurred and not the date of submission of the cash payout application.
- Businesses can submit their cash payout claims for YA 2018 after the end of the relevant financial quarter, but not later than the income tax filing due date of YA 2018. From 1 August 2016, it is compulsory to e-file the PIC Cash Payout application.
For further details, please refer to the IRAS’ website.
Source: Inland Revenue Authority of Singapore (IRAS)