Productivity and Innovation Credit (PIC) Scheme

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. 

Under the PIC Scheme, businesses enjoy 400% tax deductions/allowances for qualifying expenditure incurred in any of the Six Qualifying Activities from the Years of Assessment (YAs) 2011 to 2018.  For YA 2013 to 31 Jul 2016, eligible businesses can also exercise an irrevocable option to convert qualifying expenditure of up to $100,000 for each YA into cash, at a conversion rate of 60%. For qualifying expenditure incurred on or after 1 Aug 2016, the cash payout conversion rate will be reduced from 60% to 40%. The PIC scheme will lapse after YA 2018.

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 2018) 
  • 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 picredit@iras.gov.sg