Income Tax – Revised e-Tax Guide on PIC

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.

If you have any questions regarding the above, please contact us at

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