IRAS issues revised e-Tax Guide on Productivity and Innovation Credit (Third Edition)

23 September 2013

The revised edition of the e-Tax Guide on Productivity and Innovation Credit (PIC) was issued by the Inland Revenue Authority of Singapore (IRAS) on 20 September 2013. The PIC scheme was introduced in Budget 2010 and the first edition of the e-Tax Guide to the scheme was published on 15 July 2011, followed by a second edition on 17 August 2012.

In the third edition, amendments were made to reflect the introduction of the PIC bonus and enhancements to the PIC scheme announced in Budget 2013.

With effect from year of assessment 2013, the PIC scheme is enhanced as follows:

  1. The term “automation equipment” has been changed to “information technology (IT) and automation equipment” as PIC already supports IT-related software besides automation equipment.
  2. PIC IT and Automation Equipment (Annex A)
    • The criteria for approving automation equipment on a case-by-case basis are liberalised. Basic tools may also be approved for purposes of PIC if they meet the approval criteria.
  3. Licensing of qualifying Intellectual Property Rights (IPRs) (Annex B)
    • Licensing of qualifying IPRs is included as one of the qualifying activities under PIC.

The e-Tax guide is available on the IRAS website.

Source: Inland Revenue Authority of Singapore