Productivity Innovation Credit (PIC) 400% Tax Deduction/Allowances

Businesses can enjoy 400% tax deduction/allowances on up to $400,000 of their expenditure per year in each of the six qualifying activities, instead of the 100% deduction/allowances under the existing tax rules.

Year of Assessment (YA) Expenditure Cap per Qualifying Activity* Tax Deduction per Qualifying Activity

2011 and 2012


(400% x $800,000)

2013 to 2015


(400% x $1,200,000)


For example, a company has a “Gross Taxable Profit” of $1M. It has bought about $100K of IT equipments.

It will enjoy PIC 400% tax rebate of $400k. Thus, it lowered the taxable income to $600k.

Currently, the corporate tax is 17%.  Therefore, there is a tax saving of $68k ($170k – $102) or 68% off  ($68k/$100k).

In short, the company pay $32k for $100k worth of IT hardware and softwares.


Download FAQs about Productivity Innovation Credit (PIC) – Tax Deferral (Tax Rebate)



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