More support for companies in making PIC claims for R&D activities
- POSTED: 05 Aug 2014 21:33
A revised e-tax guide will be released later this month to help companies with their Productivity and Innovation Credit (PIC) claims for undertaking research and development.
SINGAPORE: To help companies with their Productivity and Innovation Credit (PIC) claims on research and development activities, there will be a revised e-tax guide later this month which will outline clarifications on the qualifying criteria, explain the review process for R&D claims, and highlight the documentation that companies can use to substantiate their claims.
Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said this in a written Parliamentary reply to a question from MP Zaqy Mohamad on Tuesday (Aug 5). Mr Tharman added that the R&D expenditure incurred by businesses claiming deductions under the PIC varied widely. Among the small and medium enterprises (SMEs), the figure averaged S$450,000, said Mr Tharman.
To further help smaller businesses, the Inland Revenue Authority of Singapore (IRAS) will publish a simplified set of guidelines on its website. The agency will also provide more examples of qualifying industry-specific R&D activities starting with the Information, Communications and Technology (ICT) sector and the Food & Beverage industry. These examples will be published by the end of the year, said Mr Tharman.
IRAS also plans to expand the Technical Advisory Panel of independent experts, which comprises academics in science and technology as well as industry representatives, to provide stronger support to businesses in complex R&D cases.