What is Productivity and Innovation Credit (PIC) Grant by IRAS?

Productivity and Innovation Credit (PIC) Scheme is to help local businesses to increase their productivity & innovation. Company can enjoy 400% tax deductions/ allowances and/or 60% cash payout for investment in innovation and productivity improvements under the Productivity and Innovation Credit (PIC) scheme.  Eligible businesses can apply to convert up to $100,000 of their total expenditure for each YA in all the six qualifying activities into a non-taxable cash payout.

A company can apply for the PIC scheme multiple times as long as it has not reached the maximum quota of $60,000. The minimum qualifying expenditure for each funding application is S$400.

From YAs 2013 to 2015, company can also enjoy a PIC Bonus, a dollar-for-dollar matching cash bonus given on top of the existing 400% tax deductions/ allowances and/or 60% cash payout.

Who is Eligible for PIC Grant?

Businesses eligible to apply for the cash payout are sole-proprietorships, partnerships, companies (including registered business trusts) that have:

• incurred qualifying expenditure during the basis period for the YA in which a PIC Bonus is claimed;
• active business operations in Singapore; and
• at least 3 local employees (Singapore citizens or Singapore permanent residents with CPF contributions) excluding sole-proprietors, partners under contract for service and shareholders who are directors of the company.

For more information, please click on the links below:

About PIC Bonus
Computing PIC Bonus
Qualifying Conditions
Payment of PIC Bonus
Frequently Asked Questions (FAQs)

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