The e-Tax Guide on the Productivity & Innovation Credit (“PIC”) has been amended on 19 September 2014 to reflect the following changes:
1. To reflect the extension of PIC for another 3 years and the introduction of the PIC+ Scheme for qualifying SMEs as per Budget 2014.
2. Clarifying the conditions for the cash-payout option – the period for determining the 3-employee condition will be extended from 1 month to 3 months with effect from YA 2016.
3. With effect from YA 2014, PIC is extended to include training expenditure on individuals under centralised hiring arrangements.
4. Insertion of Annex H dealing with the introduction of measures to curb PIC abuses. The IRAS has given 4 examples of how PIC arrangement is considered abusive.
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