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23 Feb 2014

The 7 Changes to PIC that You Must Know

Over the past few days, I poured over 20+ pages at IRAS website and managed to sniff out the 7 changes to this PIC (Productivity and Innovation Credit) Scheme.  Know them and you'll be able to take advantage of them.  If you are ignorant, you will lose out at least $375,000.  The 7 Key Changes are:
  1. PIC is now extended to 2017 (originally to end in 2014).  This means that companies have more time to plan and take full advantage of this very general and generous scheme;
  2. Cap for Tax Deduction claims are now increased from $400,000 to $600,000 a year, effective for years 2013 to 2017.  This new scheme is called PIC +.  For cash payout, the cap remains at $100,000 per year;
  3. Website design and creation, including the registration of domain names, now qualify for IT claims, also effective for years 2013 to 2017.  Note that Search Engine Optimization (SEOs) will also qualify for this if SEOs are done as part and parcel of website creation. This means that companies can invest in more mobile sites (apps) and websites to effectively market their business. 
  4. Training expenses incurred for related companies employees (not under your company's payroll) are also eligible for PIC claims, also effective 2013 to 2017.  Also, examination fees where there is no training expense incurred, too qualify for PIC claims;
  5. List of Automation Equipment is now extended to include landscaping equipment and covers for open-top containers
  6. All IT and Automation Equipment claims under Hire Purchase (HP) need to follow the new HP Claim form.  This effectively eradicates interest and other non-equipment claims.
  7. As for the popular PIC Bonus of $15,000, there is no change and also no extension. This means that if you have already received the PIC Bonus, there is no more new PIC bonus to look forward to. 
The PIC (Productivity and Innovation Credit) Scheme is an general and generous scheme from the government to give cash payouts or 3 times additional tax deductions to businesses that invest to innovate and up their productivity.  The 8 types of expenditure eligible for PIC Claims are: Training, IT Solutions, IT Hardware, Software, Automation Equipment, R & D, Intellectual Property Rights and Singapore Design Council design projects.   Businesses can get up to $60,000 a year from 2012 to 2017, or opt for 300% Tax Deduction from 2010 to 2017.  On top of that, businesses will also automatically receive the PIC Bonus of $15,000 Cash if their PIC Claims exceed $5,000 in a year.  To know more about what you can claim and what you cannot claim for PIC, visit here

By Andy Ng, whose training on PIC and other sales and management topics have been featured in The Straits Times on 3 June 2013 page 20 (Money).  Contact Andy at Whatsapp to 8201-4347 or email to him at andythecoach@gmail.com now.  Related articles on training, management and business include:

  1. Handouts like PIC are not as useful as business
  2. Newton's 3rd Law and You
  3. How Confucius did it
  4. Solving Your Problems in a very SAD Way
  5. The best salesperson is never from your company or industry
  6. Outsell your competition with Successful Selling Strategies
  7. 5 Common Management Myths and Truths

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