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PIC claim services


The PIC scheme provides funding support to businesses that have taken initiatives to improve productivity.

The two most common PIC activities that businesses claim are (1) purchase or leasing of PIC IT & automation equipment and (2) training of employees.

We help you to identify items that qualify under PIC and prepare your application.

If your equipment helps to automate and improve productivity but falls outside IRAS's prescribed list, we help you to apply for approval from IRAS on a case-by-case basis.

With the cash grant, you receive practical support while growing your business.

Don’t miss out and make the most of the benefits from PIC to improve your business.

 

 
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↓  PIC activities
The PIC Scheme is available from YA 2011 to YA 2018. The six activities covered under the PIC scheme are:

- Purchase or lease of PIC IT & Automation Equipment
- Training of employees
- Registration of intellectual property
- Acquisition or in-licensing of intellectual property
- Research & development
- Approved design project

↓  Expenditure cap
For Year of Assessment (YA) 2016 to YA 2018, expenditure cap per activity per year is $400,000. Qualifying SMEs that qualify for the PIC+ Scheme enjoy additional expenditure cap of $200,000 per activity per year, making the total annual activity cap $600,000. To be eligible, either one of the following conditions will have to be met: (1) revenue ≤ $100 million or (2) ≤ 200 employees. This criteria will be applied at the group level if the business is part of a group.

Qualifying expenditure is after deducting any grant or subsidy from the government or statutory board.

↓  PIC cash payout
Qualifying businesses can convert up to $100,000 of their qualifying expenditure in each YA into a cash payout. The cash payout rate currently is 60%. This rate will be lowered to 40% for qualifying expenditure incurred from 1 August 2016 onwards.

Cash payout received is not taxable. Qualifying expenditure converted into cash payout is not deductible in the income tax returns.

A PIC cash payout application form needs to be submitted. We will advise you on the requirements and prepare the relevant form and documents for the application. The application can be made after the end of each quarter or combined quarters in the financial year and latest by the income tax filing deadline.

↓  Qualifying conditions for cash payout
To qualify for cash payout, the business needs to meet all of the following conditions:

(i) incurred qualifying expenditure and entitled to PIC during the basis period for the qualifying YA;

(ii) carry on active business operations in Singapore;

(iii) employ at least 3 local employees (Singapore Citizen or Singapore PR with CPF contributions) excluding sole-proprietors, partners under contract for service and shareholders who are company directors; and

(iv) for YA 2016 onwards, with respect to PIC IT and automation equipment, put the relevant equipment to use.

↓  PIC IT and automation equipment
Equipment that fall under the IRAS’ PIC IT and Automation Equipment List qualify for PIC. Some common qualifying items include (but not limited to) printer, computer, laptop, software, cloud computing payment, certain website development costs.

In addition, businesses that belong to certain industries such as cleaning, construction, food and beverage, retail and manufacturing can claim PIC on prescribed equipment related to their specific sector. For example, a cleaning business can claim PIC on vacuum cleaner and ride-on sweeper.

We advise you on the items that qualify under the PIC as well as the relevant equipment for your industry and business.

Qualifying equipment need to be held for at least one year from date of purchase. If they are disposed of within one year, the PIC benefits may be clawed back.

↓  Case-by-case approval
IRAS understands that some specialised equipment that businesses use may not be in the PIC IT and Automation Equipment List. In such cases, businesses can apply for approval on a case-by-case basis.

From YA 2013, the criteria for case-by-case application are:

(i) equipment automates or mechanises work processes of the business; and
(ii) equipment enhances productivity of the business, for example by reducing man-hours or resulting in improvement in existing work processes.

Businesses can apply to IRAS for their equipment to be approved for PIC by submitting an Application for Approval of Equipment for PIC Form. We will advise you how to meet the requirements for case-by-case application and prepare the relevant form and documents that need to be submitted. This application needs to be done before any cash payout or PIC claim can be made.

↓  Staff training
There are two types of staff training, external training and in-house training.

For external training, qualifying expenses include course fees, rental of external training venue, meals and refreshments providing during the course and training materials and stationery.

In-house training includes qualifying training programmes such as WDA-approved WSQ training courses, ITE-approved courses and ITE-certified on-the-job training courses. Certain in-house training without certification may also qualify for PIC, subject to a maximum cap of $10,000.

Qualifying expenses for in-house training include salaries and other remuneration (excluding director fees) paid to in-house trainers for delivery of the course, rental of external training venue, meals and refreshments providing during the course and training materials and stationery.

We can advise you on which are the expenditures which qualify under the PIC and help you prepare the relevant information and form for PIC application.


 

How we help


accounting services Identify items that qualify for PIC

We help you to identify items that qualify for PIC.


accounting services PIC application

PIC Cash Payout Application

Application for Approval of Equipment for PIC (case-by-case basis)


accounting services Obtain cash grants

We help you obtain cash funding support for your expenses and purchases.

 
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Get in touch

Talk to us about your PIC expenditures. Or if you've a question, drop us a note.