PIC for website design and development

PIC for website design and development – 60% cash payout

From YA 2014 to YA 2018, website will be included as a prescribed PIC automation equipment. Accordingly, website development costs, including costs incurred for the one-time registration of a domain name for the website, will qualify for PIC.

The maximum cash payout is calculated as follows:

Year of Assessment - YA 2011 and 2012 (Combined)

Expenditure Cap for All Qualifying Activities: $200,000*
* Only if you are carrying on a trade or business for the relevant YAs. Otherwise, the combined cap is reduced accordingly.

Cash Payout Rate: 30%

Maximum Cash Payout: $60,000
(30% x $200,000)

Year of Assessment - YA 2013 and 2015 (Cap cannot be combined)

Expenditure Cap for All Qualifying Activities: $100,000 per YA

Cash Payout Rate: 60%

Maximum Cash Payout: $60,000 per YA
(60% x $100,000)

Year of Assessment - YA 2016 and 2018 (Cap cannot be combined)

Expenditure Cap for All Qualifying Activities: $100,000 per YA

Cash Payout Rate: 60%

Maximum Cash Payout: $60,000 per YA
(60% x $100,000)

Conditions for cash payout

Businesses eligible to apply for the cash payout are sole-proprietorships, partnerships, companies (including registered business trusts) that have:

– incurred# qualifying expenditure and are entitled to PIC during the basis period for the qualifying YA;
– 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. A business is considered to have met the 3-local-employees condition if it contributes CPF on the payroll of at least 3 local employees in the relevant month(s).

#An expense is incurred when the legal liability to pay has arisen, regardless of the date of actual payment of the money. For more information and examples of when an expense is considered incurred, please refer to Examples of when an expenditure is considered incurred

Productivity and Innovation Credit (PIC) Scheme

Under the Productivity and Innovation Credit (PIC) scheme, your business can enjoy:

400% tax deductions/ allowances and/ or
60% cash payout

The tax benefits are available from the Years of Assessment (YAs) 2011 to 2018, for investments in any of the six qualifying activities relating to innovation and productivity improvements.

For more information, you may refer to IRAS website