Skip to main content

What the Government May Not Tell You About the PIC

* Find out how to be a great manager in 4 weeks at here
Everybody knows that the PIC (Productivity and Innovation Credit) scheme is about the government handling out $60,000 cash every year (from 2012 to 2017) on your spendings on External Training, Internal Training, IT, Automation Equipment, Websites and Intellectual Property Rights.  However, the following are the 5 things that the government may not tell you about the PIC:
  1. The PIC Bonus scheme, which is expiring in 2014, is given to you automatically without you applying.  What they may not tell you is that if your financial year-end is in 30 June, then your PIC Bonus has already expired on 30 June 2014.  Note that once expired, the PIC Bonus will not be renewed.  The government will not send out reminders and companies can only blame themselves if they realized that they have not receive the full $15,000 PIC Bonus.
  2. PIC is given to all entities, including non-profit organizations like clubs and societies.  However, non-profit entities do not get cash payout, they only receive additional 300% tax deductions on their PIC spendings.  Since most of such organizations do not pay tax, having 300% tax deduction on PIC spendings is irrelevant.  In short, non-profit entities will benefit much less from PIC scheme.  But they are still able to get the $15,000 PIC Cash Bonus as long as their PIC claims exceeds $5,000 in a year.
  3. On the PIC Cash Payout Form, the government says that 'this form and the annex may take you 10 minutes to complete'.  What they do not tell us is that you have to take anything from 10 minutes to days to extract the PIC spendings from your accounting records.  In short, it's rare to complete the form in 10 minutes!
  4. Partial Claims.  It is not clear that you can do partial claims, and if you miss out some items in your last year's claim, can you still claim them now?  Well, the answer from the IRAS office is 'Yes, as long as there is no duplicate claim and it is a genuine claime'.
  5. How the PIC Spending is allocated.  Yes, the limit for cash payout is $100,000 yearly, but there is no requirement on how this $100,000 is made up of.  For example, can you claim the entire amount on just one type of expenditure?   It appears that this is one flexibility the government is giving us on PIC claims: there is no pre-set limit for any type of PIC expenditure.
By Andy Ng, Chief Trainer at Asia Trainers, details of training are at here http://asiatrainers.com/SeminarsList.php.  Related articles:
  1. Using War Strategies in Your Office
  2. The 21 Ways to sell at higher price and still get the sale
  3. Top 11 Mis-understandings about PIC and how they affect You
  4. Costly Mistakes in Making PIC Claims 
  5. How to Get PIC $36,000 Cash without spending a single cent
  6. How the Tightening of PIC and Expiry of PIC Bonus Affect You NOW
  7. Top 7 Changes to PIC that You're Supposed to Know
  8. Why Employees Don't Get a Single Cent from PIC
  9. How Tharman Kill with a Borrowed Knife with PIC
  10. How to Create the Conditions for Your People to Surprise You
  11. The Biggest Payment in this PAP World
Labels:

Comments

Post a Comment

Popular posts from this blog

What an Executive Coach and Business Coach Does

Post a Comment
Read more

The Secret Under the Mattress: Why would a 79-year Man Bet So Big on 4D?

It was 2007 when we discovered his secret. While moving my father’s mattress, we found them: heaps and heaps of Singapore Pools 4D tickets. They were stacked in layers, a paper trail of lost hopes. What shocked us most wasn’t just the volume, but the stakes. He wasn’t betting a few dollars for fun. He was punting hundreds of dollars per draw—nearly ten times a month. At the time, my siblings and I were furious. Our father was a 79-year-old retiree. We wondered, with a mix of anger and confusion, why a man at his stage of life would need to win such "big money." What was he going to do with the money? We saw it as a reckless habit, a sign of poor judgment in his final years.  Some of us would say, "If I were to give him money to buy 4D, why don't I use the money and buy 4D myself?  At least I have better discipline".  It has taken me two decades, and the experience of raising my own three grown-up children, to finally see the truth that was hidden under that matt...
Post a Comment
Read more

Head Bleeding when the Chair Falls

The Weight of Silence: What Were We Really Arguing About? My earliest memories are punctuated by the sound of shouting. In 1970, when I was barely 6 years old, I stood as a small witness to the fierce quarrels between my father and my late eldest brother Kah Yang (he passed away in 1971 at the age of 17). As I grew up, these contradictions became the soundtrack of our lives, usually centered around our family's shoe shop and clothing stalls in Chinatown. In the court of family opinion, the verdict was almost always the same: my father was "wrong." He was judged as a man who didn't fulfill his role, who wasn't "burdening" enough for the family’s success. But as I look back from the vantage point of 2026, I have to ask: Was that actually true? Let me finally put to rest what my father did right: the truths that were buried under decades of criticism: Unseen Labor: He worked grueling, long hours. I remember him hauling boxes of goods and equipment to set u...
Post a Comment
Read more