Budget 2016: PIC cash payout rate cut to 40%; scheme to expire after YA2018

The Ministry of Finance will lower the cash payout rate under the Productivity and Innovation Credit (PIC) scheme to 40 per cent from 60 per cent, said Heng Swee Keat, Minister for Finance. This will apply to expenditures incurred on or after August 1, 2016. The second component of PIC, a tax deduction at 400 per cent, is unchanged.

The PIC scheme will expire after year of assessment 2018.