The main criteria applicable to the PIC scheme equally apply to both the tax allowance and cash payout options. However, there are different application procedures for each option, which must be rightfully fulfilled in order for applicants to benefit from the gains presented by the scheme.
A business can claim the 400% tax deduction/allowance on qualifying expenditure in any of the categories listed, provided the amount is eligible even after subtraction of monies earned from other statutory grant schemes.
The claim is raised by filing the enterprise’s tax returns for the YA in question by the due date of the following year of assessment. For instance, for expenses incurred over the year 2013, the last date of submission is 15th April 2014 for partnerships and sole proprietorship while companies have up to 30th November 2014. The former are also required to download, complete and hand in the PIC Enhanced Allowances/Deduction Declaration Form for Sole-proprietorship and Partnerships with the tax returns.
A business may elect to submit one return for the entire year, or one or two combined successive quarters in any combination as they fall due in every year of assessment. This is allowed, even though the review criteria will differ depending on the method elected.
To apply, you will need to complete the PIC Cash Payout Application form which is available online at the IRAS website. Businesses that are claiming PIC for automation equipment procured by hire purchase must also complete and submit the Hire Purchase Template with their forms.
The application form is built with authentication structures to ensure that all necessary information has been provided, and comes with a self-help guide in case you get stuck anywhere during the process. These tools greatly reduce the processing time since IRAS no longer needs to communicate back to applicants seeking clarification of further information on various points in the application.
The old application form (Form 33000, Annex A1 and Annex A2) was discontinued from 1st May 2014, but IRAS will still process applications made on the old form until 31st July 2014. From this date, only the new form stated above will be recognized, since it incorporates the changes stipulated in the 2014 budget release.
Once duly completed, the original form must be submitted to IRAS, signed and in addition the hire purchase template if applicable. Cash payouts are usually processed and paid out in the course of three months from the application date. Unapproved requests will be returned to senders with feedback from IRAS explaining reasons for rejection e.g. due to missing information, lack of support documentation etc. Ensure that you have carefully given all the required information.