Productivity and Innovation Credit (PIC)

Acquisition or leasing of
certain automation equipment

Costs incurred to acquire/
lease prescribed automation
equipment

400% allowance/deduction
for the first $400,000 of
qualifying expenditure

100% allowance/deduction
for the balance expenditure

Cost/Lease expenses of
IT equipment such as fax
machine, laser printer,
computer and laptops

Cloud computing payment

Website development costs
(including costs incurred for
the one-time registration of a
domain name for the website)
from YA 2014

Acquisition and In-licensing
of Intellectual Property Rights
(IPRs)

Costs incurred to acquire IPRs
for use in a trade or business
(excluding EDB approved IPRs
and IPRs relating to media and
digital entertainment content)

Costs incurred on IPR
in-licensing from Years of
Assessment 2013 to 2015

400% allowance for the
first $400,000 of qualifying
expenditure

100% allowance for the
balance expenditure

Payment to buy a patented
technology for use in
manufacturing process

Price paid for copyright

Research and Development
(R&D)

Costs incurred in Singapore on
staff costs and consumables
for qualifying R&D activities
carried out in Singapore or
overseas

400% tax deduction for the
first $400,000 of qualifying
expenditure

100%/150% deduction for
the balance expenditure in
Singapore

Salaries for R&D personnel
and fees to R&D institute for
creating a novel product