Training course fees spent on training your employees will qualify for enhanced deduction under the Productivity and Innovation Credit (PIC) Scheme. Businesses can convert up to $100,000 (subject to a minimum of $400) of the total qualifying training expenditure at a rate of 60% into cash payout of up to $60,000 each year. More details can be found in the IRAS website (www.iras.gov.sg)

This PIC cash payout option is available from YA 2011 to YA 2015 as follows:

1. For YA 2011 and YA 2012 – a combined cap of $200,000 qualifying expenditure for all six qualifying activities at 30%, maximum cash payout of $60,000 for YAs 2011 and 2012; and
2. For YA 2013 to YA 2015 - $100,000 qualifying expenditure each year for all six qualifying activities at 60%, maximum cash payout of $60,000 for each year.

To be eligible to opt for the cash payout, the Company must have:

1. Incurred qualifying expenditure and are entitled to the PIC during the basis period for the qualifying YA;
2. Active business operations; and
3. At least 3 local employees (Singapore citizens or PRs with CPF contributions).

The six activities that will qualify for PIC benefits are as follows:

• Acquisition or leasing of prescribed automation equipment;
• Training of employees;
• Acquisition of Intellectual Property Rights;
• Registration of patents, trademarks, designs and plant varieties;
• Research and development expenditure; and
• Investment in approved design projects.