Income Tax – Revised e-Tax Guide on Productivity & Innovation Credit


The IRAS has issued the fifth edition of the e-Tax Guide on Productivity and Innovation Credit on 22 November 2016 with a view to incorporating the Budget 2016 changes:

  •  Expiry of the PIC Scheme in YA 2018,
  • Reduction in the PIC cash payout rate from 60% to 40% for qualifying expenditure incurred on or after 1 Aug 2016,
  • Compulsory e-Filing of PIC cash payout applications with effect from 1 Aug 2016.

Other amendments include the following:

  •  Remove information on PIC bonus which expired after YA2015.
  • The evaluation criteria for the case-by-case approval of automation equipment (see Annex A)  Remove paragraph on the clarification of the basic tool criteria c. Enhanced Writing-Down Allowance (“WDA”) and Deduction for Intellectual Property Rights (“IPRs”)
  • Enhancement to allow companies to make an irrevocable election to claim the WDA over a five, ten or fifteen-year period (on a straight line basis) on capital expenditure incurred in acquiring the IPR – with effect from YA 2017.

If you have any questions regarding the above, please contact support@whm-consulting.com.

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