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Expiry of PIC Scheme in 2018: 3 Things You Need to Know
Posted on Jul 24, 2017

As announced by the Finance Minister at his Budget 2016 speech, the PIC scheme will lapse after YA 2018. However, businesses may continue to enjoy 100% deductions/allowances on the expenditure incurred subject to existing tax rules.

Here are three key details businesses need to take note:

  1. To qualify for PIC funding, businesses must incur the expense by the last day of the basis period of YA 2018. Any expense incurred after this date will not qualify for PIC benefits. For example, a company with a financial year end of 31 December must incur the qualifying expense by 31 December 2017 in order to qualify for the PIC benefits.
  2. Businesses may opt for cash payout on qualifying expenses incurred during the basis period of YA 2018. The eligibility for PIC is determined by the date that the expense is incurre, not the date of submission of the cash payout application.
  3. You may submit your cash payout claim anytime after the end of your financial quarter,, but not later than the income tax filing due date of YA 2018.

Further details may be obtained at https://www.iras.gov.sg/irashome/Schemes/Businesses/Productivity-and-Innovation-Credit-Scheme/Expiry-of-PIC-Scheme-after-YA-2018---How-to-determine-the-dates-of-the-expenditure-incurred-for-claiming-PIC-Cash-Payout/