KNOW ABOUT BUSINESS OWNERS CLAIMING PIC BONUS!

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What is PIC Bonus?

The PIC bonus is given to the businesses that have invested in PIC qualifying activities. The bonus awards the businesses a dollar-for-dollar matching cash bonus for relevant Years of Assessment. It is subject to a total cap of $15,000 in all 3 YAs taken together. The PIC Bonus is liable to taxes. The bonus is given in addition to the existing 400% tax deductions or allowances and/or 60% PIC Cash Payout. In order to get the bonus, the business has to make a claim for the above mentioned deductions and/or cash payout.

Why do business owners need the PIC business?

The bonus ensures that the business can make significant improvements in the field of productivity and innovation, which will lead to the overall growth of the company. The PIC Bonus to be given out to a business is decided on the basis of the expenditure incurred on PIC-qualifying activities by the company.

Business owners who claim the bonus must know about the facts concerned with the PIC bonus:

  • The business owners should be aware about all the necessary conditions to get the bonus. The business has to actively carry out operations or they are exempted from getting the bonus.
  • A notice is given to the business about the amount of bonus being awarded to it on the basis of the PIC-qualifying activities they undertake. The payment is made within 3 months from filing the tax returns along with all the required information concerning the business. The bonus is paid by crediting it to the income tax GIRO accounts held by the business.
  • The business should meet all the conditions of 400% deductions/ allowances and/or 60% cash payouts while making CPF contributions to the payroll for satisfying the 3-employee condition.
  • The business has to pay taxes on the PIC Bonus received.
  • No restriction is imposed on the way in which the bonus is used by the business.
  • Any fraudulent practices found in the methods to claim the bonus by the business is severely punished by the government.
  • The business owners can take assistance from skilled consultants who will guide them in making their PIC schemes and cash payouts, which make the process of getting the bonus easy.
  • The standard PIC qualifying expenditure refers in specific to the net amount of subsidy or grant that is imposed by statutory brands and also the government.

If the business owners make effective use of the bonus then it will help the business to expand and compete with companies all around the globe, enhancing the economic condition of the country in which it is based.

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