Income Tax – Processing Time for PIC Cash-Payout Clarified


In my tax training yesterday, some participants wonder why it has been taking “so long” for IRAS to process the PIC Cash Payout Application.  Some participants are also worried about whether IRAS might reject such application.

It has been clarified by IRAS that it strives to disburse the cash payout within three months upon receiving a taxpayer’s complete application.  Most of the time, IRAS should be able to the applications within six weeks.

Notwithstanding the above,  IRAS selects a sample of applications for audit purposes and in such cases, IRAS will request further details and supporting documents for review.  IRAS says that it strives to complete the review within three months from receiving the complete information. The processing time may take up to six months, depending on the complexity of each case.

Suppose a taxpayer has incurred expenses on staff training conducted by external trainer.  The taxpayer should keep a record of the following documents and furnish them to IRAS upon request:

  1. Name of course/training
  2. Exact date(s), duration and venue of course/training
  3. Full name, designation and qualification of trainer(s)
  4. Full name, identification number (e.g. NRIC), designation and employment period of trainee(s)
  5. Course objectives, course outline and a copy of the course handout or training manual
  6. A copy of the invoice(s) issued by the external training provider
  7. Evidence of payment (e.g. bank statement)

If you have any questions, please contact us at support@whm-consulting.com.

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