60% PIC Grant Ending by August

60% PIC Grant Ending by August

Local companies will now have only until July 31st 2016 to claim the full 60% reimbursement provided by the IRAS Productivity and Innovation Credit (PIC) scheme. Applications made thereafter will not be entitled to the same payout rate, receiving only 40% instead.

The PIC scheme was implemented in 2010 to help local companies increase their productivity and innovation by affording them tax deductions or cash grants. The grant eases the financial burden of firms who seek to do the following:

  1. Acquisition and leasing of PIC IT and Automation Equipment
  2. Training of Employees
  3. Acquisition and licensing of Intellectual Property Rights
  4. Registration of Patents, Trademarks, Designs and Plant Varieties
  5. Research and Development Activities
  6. Design Projects approved by DesignSingapore Council

The grant currently subsidises the operating costs incurred by the above-stated activities. However, as of August 1st 2016, the cash payout rate will be reduced to 40% for qualifying expenditure incurred on or after August 1st 2016. This change was announced by the Minister of Finance, Mr Heng Swee Keat, as part of his Budget Statement for the Financial Year 2016 in Parliament. The PIC scheme will also expire by the end of 2018.

If you’re looking to optimise your workflow with technology like HReasily (also PIC-eligible), don’t hesitate and contact us (6438 3190) for a non-obligatory consultation today!