The PIC scheme allows companies to incur and claim up to S$400,000 on each qualifying activity and enhanced deduction of S$1,200,000 in each business year.

Furthermore, the PIC scheme also allows companies to combine their qualifying expenditure for the business year 2012 to 2014 and 2015 to 2016. This means that if your company is carrying on business activity for the business year 2012 to 2014, you can spend a total of $1,200,000 in these 3 years (not limited to $400,000 per business year) and claimed enhanced deduction of $3,600,000 all in 1 year.


FGH Pte Ltd carried on a business activity from business years 2012 to 2014.

It incurred S$500,000 in training expenses for its employees in business year 2012.

Even though the capping for each qualifying activity (i.e. training) is limited to a cap of S$400,000 per business year, due to the combined capping of S$1,200,000 for 3 years, FGH Pte Ltd can claim the $1,500,000 (S$500,000 x 300%) in enhanced deduction and it will have S$700,000 (S$1,200,000 – S$500,000) left of qualifying expenditure to claim enhanced deduction in business years 2013 and 2014

If your company only commenced business in year 2013, the capping will be reduced to S$800,000 (S$400,000 x 2 years). Likewise, if your company only commenced business in year 2014, the capping will be S$400,000.

This capping of $400,000 of 1 year and combined capping of S$1,200,000 applies to all PIC qualifying activities.

Likewise, for business years 2015 to 2017, the company can also enjoy combined capping of $1,200,000 for the qualifying activities.

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