Singapore Publishes Revised Edition of its Productivity Credit e-Tax Guide

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SINGAPORE – The Inland Revenue Authority of Singapore (IRAS) has published a revised edition of its e-tax guide for the Productivity and Innovation Credit (PIC).  The new guide includes the changes made in February’s 2014 Budget Statement.

PIC is intended to encourage productivity and innovation activities throughout Singapore. 

The main changes to the new e-tax guide are as follows:

  • PIC is extended for another three years (until 2018) at the same support level:
    • in each YA, tax deductions on up to 400 percent on up to SGD400,000 (US$315,750) of qualifying expenditure, or
    • a 60 percent cash payout on up to SGD100,000 of qualifying expenditure
  • The introduction of the PIC+ scheme

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PIC + includes a number of important regulations that companies should be aware of, these include:

  • The introduction of measures to curb PIC abuses
  • The expenditure cap for PIC cash payout will remain at SGD100,000 of qualifying expenditure for each YA
  • In 2014, PIC will be expanded to include training expenditure on individuals under centralized hiring arrangements
  • In 2015, the expenditure cap will be raised for each of the qualifying activities from the current SGD400,000 to SGD600,000
  • In 2016, the period for determining the minimum three-local employee condition under the cash payout option will be extended from one to three months

For further clarification on PIC, PIC +, or any other question related to Singapore tax issues, please contact Dezan Shira & Associates here.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email asean@dezshira.com or visit www.dezshira.com.

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