Singapore Government Pays You to Use ezBCM via PIC Scheme

Posted on by BC Connex

 

UPDATE (DEC 2017): The PIC scheme will expire after YA 2018. Businesses who wish to elect for cash payout option on qualifying expenditure must incur the expenditure by the last day of their basis period for YA 2018. Please note that cash payout eligibility is not determined by the date of submission of the cash payout application. For more information, visit the official PIC Website.

 

The Productivity and Innovation Credit (PIC) Scheme is further enhanced to support local SMEs. The good news is ezBCM software qualifies your company to benefit from PIC today! Through PIC, your business can enjoy

  • 400% Dax Deduction and/or
  • 60% Cash Payout and
  • PIC BounsNEW

There’s no need to obtain approval before making a purchase. However, you will  need to make the acquisitions before 2014 ends, as the period covered is Years of Assessment from 2011 – 2015.

PIC Bonus In a bid to encourage more companies to improve productivity, the new PIC Bonus scheme was announced during Budget 2013. Businesses making use of the PIC scheme during Years of Assessment from 2013 – 2015 will receive a dollar-for-dollar matching cash bonus.

 

An Example on Cash Payout  (Based on IRAS’ computation)

YA   2013

YA   2014

YA   2015
Qualifying PIC Expenditure

$6,000

$3,000

$12,000
PIC Cash Payout (1)

$3,600

$1,800

$7,200
PIC Bonus

$6,000

$0 (2)

$9,000 (3)
Total PIC Benefits

$9,600

$1,800

$16,200
  1. Computed based on 60% of qualifying PIC qualifying expenditure. In this example, the business applies for cash payout for YA 2013 to 2015. Businesses that claim 400% tax deductions/allowances in any or all the three YA will also be eligible for the PIC Bonus.
  2. PIC Bonus is not given as qualifying PIC expenditure incurred during YA 2014 is less than $5,000.
  3. PIC Bonus cap of $15,000 less PIC Bonus given in YA 2013 of $6,000.

Based on the example above, the total cash payout made is even higher than the expenditure! The government actually pays you money to use technology to increase productivity.

Check out more details at IRAS page on PIC (PIC updates from Aug 2016)