40% CASH PAYOUT under PIC Grant

  • PIC


What is PIC?

Production and Innovation Credit scheme (PIC) is given by IRAS to support business in Singapore. Business can enjoy 400% tax deductions/ allowances on up to $400,000 of your company expenditure per year in each of 6 Qualifying Activities: 

  • Acquisition and Leasing of PIC IT and Automation Equipment
  • Training of Employees
  • Acquisition and Licensing of Intellectual Property Rights (IPR)
  • Registration of Patents, Trademarks, Design and Plant Varieties
  • Research and Development (R&D) Activities
  • Design Projects Approved by Design Singapore Council


Who is Eligible for PIC grant?

  1. All-Singapore-based businesses that have invested in one of six PIC Qualifying Activities
  2. Minimum 30% Singaporean Share-Holding, at least 3 local employees with CPF Contributions
  3. Yearly company revenue should be less than $100 million, should not employ over 200 employees.

PIC Grant options available

Tax Deductions/ Allowances

Business can enjoy 400% tax deductions/allowances on up to $400,000 of qualifying expenditure per year on any activities that are eligible for this grant. The tax deduction is 400% of the annual expenditure of your company, capped at $600,000 per year. This implies that if the annual expenditure of your company is $500,000, the tax deduction amount will be $2,000,000.

Cash Payout

The eligible SMEs can apply to convert up to $100,000 of their total qualifying expenditure into a non-taxable cash payout every year, instead of claiming tax deduction. Businesses can claim up to 40% cash payout from YAs 2011 to 2018. This grant aims to help small and emerging businesses that face financial problems. These businesses with limited financial resources can convert their qualifying expenditure into a cash payout to invest in innovation, technology or upgrade their business operations.

Do take note that once the qualifying expenditure is converted to cash, it cannot be claimed as tax deductions/allowances.

For more details regarding PIC Grant, please visit Iras PIC scheme.

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