22 Feb 2013

Your editorial “Companies need more help to restructure” (14 Feb 13) suggested simplifying the application process of the Productivity and Innovation Credit (PIC) scheme “which appears excessively onerous to many companies”. Another commentary “Putting businesses on the path to innovation” (15 Feb 13) made a similar point.

Contrary to the statement, the applications for PIC tax deductions and cash payout are quite straightforward. Businesses claim the PIC tax deductions as part of their annual tax filing, in the same way they claim other tax benefits. No additional documents are required specifically for PIC claims.

For businesses that opt for the cash payout option in lieu of the tax deductions, they need only submit the PIC Cash Payout Application form to IRAS and will, in most cases, receive the payout within three months. As the payout is a conversion of expenditure into cash, businesses will have to incur their expenditures first before claiming the PIC benefits.

To encourage and support businesses in their productivity journey, IRAS has been actively promoting the PIC scheme, especially to SMEs. Since 2010, IRAS has conducted 260 PIC seminars for over 33,000 participants and have reached out to smaller businesses in the heartlands through seminars and workshops co-organised with SPRING and GRCs. Together with the Enterprise Development Centres, IRAS conducts PIC Clinics that provide one-to-one consultation for businesses. Many of the 820 businesses that have attended the PIC clinics since its inception in 2011 have found the sessions useful.

Besides sending brochures on PIC to businesses, IRAS also works closely with other government agencies and trade associations to disseminate information on PIC to improve awareness of the scheme. For assistance on PIC scheme, please contact IRAS via [email protected] or 1800 356 8622 (for companies) and [email protected] or 6351 3534 (for sole-proprietorships/partnerships).

Claire Chua (Mrs)
Director (Corporate Communications)
Inland Revenue Authority of Singapore