Productivity and Innovation Credit (PIC grants) scheme had ended. information on this website is kept as an archive. There are replaceable scheme such as PSG scheme, CDG scheme, or SME Go Digital. *** You might want to learn more in government grants page. ***
Updates on Productivity and Innovation Credit
Most businesses in Singapore are familiar with PIC grants. This scheme was launched in 2010 by IRAS and initially, this scheme is supposed to end in YA 2015 but was extended until YA 2018.
Most of the SME tapped into the scheme for their purchase of IT and automation software and hardware such as computers, printers, website and etc. They could benefit from a cash payout of 40% (up to S$100,000 per YA) or 400% deduction for up to $400,000 ($600,000 under PIC +) per YA.
Just for your information from 2013 to 2015, the scheme provides PIC bonus. This component provides dollar to dollar matching incentive for PIC cash payout.
Just to add since 1st of August 2016, IRAS had lowered PIC claim coverage to 40%. As a business consultant, I would like to highlight the useful information on the scheme in this article.
To recap on PIC scheme six qualifying activities
The purpose of the scheme is to encourage small business to upgrade their equipment and improve business efficiency with 40% co-funding from the government. Six qualifying activities from the picture above includes;
- Acquisition and leasing of PIC IT and automation equipment
- Training of employees
- Acquisition and licensing of intellectual property rights
- Registration of patents, trademarks, designs and plant varieties
- Research and Development
- Investment in Design Projects
PIC claim 2018 for YA 2018
A lot of business owners had mistaken YA 2018 to be the year 2018 but in fact, it’s referring to the date of occurrence for your company expenditure. Therefore, You might want to refer to IRAS to understand if the dates of your purchase for qualifying expenditure. If you are unsure and required more information, feel free to email me or contact me at 91110936
This might be your last opportunity to file your application. In summary, I must confess that it is very useful to most of the SME in Singapore because it benefits the business by lowering cost on their investment for engaging in productive activities. It could be utilised to upgrade the information technology structure of a business.
Common FAQ for PIC scheme
Most SME would utilise the scheme for the purchase of IT, automation and training but you could also use them on Intellectual Property (IP), Research and Project Design.
If you feel that your purchase equipment is relevant to the productivity of the business, you could always write for approval on a case by case application.
Training of foreign employees applicable does not mix up the qualifying condition with other schemes such as WSQ, ETS or Skill Future for example.
No, PIC Bonus ended in YA 2015.
Yes, this scheme is helpful for startup so long as you fulfilled the qualifying condition.
For purchase of equipment back in 2016, it might be possible for you to still tap into the scheme for support.
PIC schemes support leasing and hire purchase. Refer to this link.
Conclusion on Productivity and Innovation Credit (PIC grants) scheme
The scheme was supposed to be extended to YA 2015 but a lot of businesses had not tapped into the scheme. The government decided to extend the scheme to YA 2018. This intention was taken advantage by “Consultants”. This leads to the scheme being abused and this forces IRAS to review all PIC claims. It is sad to know of genuine business being caught in between the crossfire.
If you have previously made any claims using the scheme. Please keep your supporting documents in case of an audit. Documents include invoices, bank statement, pictures of the purchase (and as much evidence to prove that your purchase is
Productivity and Innovation Credit (PIC grants) scheme had ended. information on this website is kept as an archive. There are replaceable schemes such as PSG scheme, CDG scheme, or SME Go Digital. *** You might want to learn more in government grants page. ***
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