Productivity and Innovation Credit (PIC) Scheme
Are you making the most out of the PIC scheme?
Do you know that your business can enjoy 400% tax deduction or 60% cash payout on training costs to upgrade the skills of your employees?
The Productivity and Innovation Credit (“PIC”) was introduced in the Singapore Budget 2010.
PIC has been enhanced in Budget 2011 and Budget 2012 to provide tax benefits for investments by businesses in a broad range of activities along the innovation value chain. The tax benefits under PIC will be effective from Years of Assessment (YA) 2011 to YA 2015.
One of the six activities along the innovation value chain that will qualify for PIC benefits are the training of employees.
Under this category, costs incurred for training of all employees include both local and foreign employees, and there’s no restriction on where the training is conducted. There’s also no requirement that the employees have to pass an assessment or examination after attending the training.
Sample qualifying expenditure includes:
- Course fees to any external training service provider
- Registration or enrolment fees, examination fees, tuition fees and aptitude test fees
- Rental of external training premises
- Meals and refreshments provided during the courses
- Training materials and stationery
Tax Benefits under PIC
- Enjoy 400% tax deduction/allowances on expenditure on each of the 6 activities (YAs 2011 to 2015)
- Opt for cash payout in place of tax deduction/allowances (YAs 2011 to 2013)
For more information on the PIC and claims, please visit the PIC website here
, call the IRAS hotline at 1800-356-8622 or email firstname.lastname@example.org