The Singapore Productivity and Innovation Credit (PIC) Bonus gives businesses a dollar-for-dollar matching cash bonus for YAs 2013 to 2015, subject to an overall cap of $15,000 for all 3 YAs combined.

1. PRODUCTIVITY AND INNOVATION CREDIT BONUS

2. OVERVIEW: PIC BONUS
About PIC Bonus
The Productivity and Innovation Credit (PIC) Bonus gives businesses a dollar-for-dollar matching cash
bonus for YAs 2013 to 2015, subject to an overall cap of $15,000 for all 3 YAs combined.
This is given on top of the existing 400% tax deductions/allowances and/or 60% cash payout (“PIC cash
payout”) under the PIC scheme. To enjoy the PIC Bonus, businesses must have made a claim for the 400%
tax deductions/allowances and/or the PIC cash payout.
The PIC Bonus is taxable.
Last updated on February 28, 2013 Copyright © 2013 Rikvin Pte Ltd

3. QUALIFYING CONDITIONS
Qualifying Conditions
Businesses eligible for the PIC Bonus are sole-proprietorships, partnerships and companies that have:
• incurred at least $5,000 in PIC-qualifying expenditure during the basis period for the YA in which a PIC
Bonus is claimed;
• active business operations in Singapore; and
• at least 3 local employees (Singapore citizens or Singapore permanent residents with CPF contributions)
excluding sole-proprietors, partners under contract for service and shareholders who are directors of
the company.
Last updated on February 28, 2013 Copyright © 2013 Rikvin Pte Ltd

4. COMPUTING PIC BONUS
You will receive an equal amount in PIC bonus on every dollar that you spend on qualifying activities,
subject to a cap of $15,000 over YAs 2013 to 2015.
YA 2013 YA 2014 YA 2015
Qualifying PIC Expenditure $5,000 $5,000 $5,000
OPTION 1: $3,000 $3,000 $3,000
PIC Cash Payout ($5,000 x 60%) ($5,000 x 60%) ($5,000 x 60%)
OPTION 2: $3,400 tax deduction $3,400 tax deduction $3,400 tax deduction
PIC Tax Credit ($5,000 x 68%) ($5,000 x 68%) ($5,000 x 68%)
PIC Bonus $5,000 $5,000 $5,000
$8,000 1 $8,000 1 $8,000 1
Total PIC Benefits
or $8,400 2 or $8,400 2 or $8,400 2
NOTE:
• Choose Option 1 if your business is not currently profitable or if you want a cash payout.
• Choose Option 2 if your business is profitable to reap the maximum tax credit.
Last updated on February 28, 2013 Copyright © 2013 Rikvin Pte Ltd

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